New Delhi: If you haven’t checked your Employees’ Provident Fund (EPF) account lately, you could be at risk of losing out on substantial interest earnings.
The Employees’ Provident Fund Organisation (EPFO) has issued a critical advisory, cautioning members that accounts lying dormant for 36 months or more will cease to accrue interest, potentially jeopardling financial losses for millions of subscribers.
With an attractive 8.25% interest rate fixed for FY 2024–25, the stakes are high for ensuring your PF account remains active.
The EPFO’s warning comes as part of its ongoing efforts to educate members about the importance of maintaining active PF accounts, especially in a dynamic job market where career switches are common. “Your EPF savings are meant to secure your future, but an inactive account could cost you dearly,” the organisation stated in a post on X.
With a new digital platform, EPFO 3.0, set to revolutionise services, now is the time for subscribers to take action and safeguard their hard-earned savings.
Why Inactive Accounts Lose Interest
According to EPFO rules, a PF account becomes inactive if no contributions or withdrawals occur for a continuous period of 36 months. Importantly, the mere crediting of interest does not count as a transaction. Once deemed inactive, the account stops earning interest, effectively freezing the growth of your savings. This rule is particularly critical for retirees, as accounts become inactive three years after retirement, typically at age 58, if no activity occurs post-55.
For instance, if you switched jobs and left your old PF account untouched, or if you’re currently unemployed, your account could be at risk. The EPFO advises immediate action to prevent this: either transfer your old account to your new employer’s PF account or withdraw the balance if you’re no longer employed. “Don’t let your money sit idle in an inactive account,” the EPFO urged, highlighting the financial implications of inaction.
How To Keep Your PF Account Active
The EPFO has outlined clear steps to ensure your account remains active and continues to earn the 8.25% annual interest, which is calculated monthly on the closing balance and credited annually. Here’s what you can do:
Check Your Account Status: Visit the EPFO’s Unified Member Portal at unifiedportal-mem.epfindia.gov.in or download the UMANG app. Log in using your Universal Account Number (UAN) and verify if your account is active. You can also check your PF balance and transaction history to ensure contributions are up to date.
Transfer Your PF Account: If you’ve changed jobs, transfer your old PF balance to your new employer’s account. Log in to the EPFO portal, navigate to the ‘Online Services’ section, and submit Form 13 for a seamless transfer. This consolidates your savings and keeps the account active.
Withdraw Your PF Balance: If you’re unemployed or no longer wish to maintain your PF account, initiate a withdrawal using Form 19 (for final settlement) or Form 10C (for pension benefits). This can be done online via the portal or UMANG app, ensuring your funds don’t lapse into inactivity.
Link UAN with Aadhaar: Ensure your UAN is linked to your Aadhaar for faster processing of claims and transfers. This also enables paperless services, reducing delays.
The EPFO’s advisory emphasises that proactive steps can prevent accounts from becoming dormant, preserving the 8.25% interest rate — one of the highest among safe investment options in India.
EPFO 3.0: A Digital Leap Forward
Adding to the urgency, the EPFO is gearing up to launch its upgraded service platform, EPFO 3.0, now delayed to late 2025 due to ongoing technical testing. Originally slated for June, the platform promises to streamline claim processing and introduce user-friendly features like UPI-based withdrawals, making it easier for members to manage their accounts. “EPFO 3.0 will transform how we serve our 7 crore active members, ensuring faster and more transparent services,” a senior official told PTI.
The new platform will also enhance tracking capabilities, allowing subscribers to monitor their account status in real-time and receive alerts about potential inactivity. This digital overhaul aligns with the government’s push for a paperless, efficient PF ecosystem, reducing the risk of accounts slipping into dormancy.
Act Now To Secure Your Future
With over ₹22 lakh crore in assets under management, the EPF scheme is a lifeline for millions of Indian workers, offering a secure avenue for retirement savings. However, the threat of inactive accounts looms large, especially for those who overlook their PF status during job transitions or retirement. The EPFO’s call to action is clear: check your account today, transfer or withdraw funds as needed, and ensure your savings continue to grow at 8.25% annually.
As the festive season approaches, taking a few minutes to secure your PF account could be the smartest financial move you make. Don’t let your hard-earned money lose its earning potential — act now to keep your future bright.