The Employees’ Provident Fund Organisation (EPFO) has issued an important warning: any PF account that stays inactive for 36 months will stop earning interest. Here’s what you need to know to protect your retirement savings.
1. What is an Inactive PF Account?
A PF account is considered inactive if there’s no financial transaction for 36 months, apart from interest credited by EPFO.
- After retirement at 55, the PF account remains active for 3 years.
- Once a member reaches 58, the account is treated as inactive.
- Without transferring or withdrawing funds, your PF stops earning interest.
2. Why This Matters
For FY 2024-25, EPF interest is set at 8.25% per annum.
- Interest is calculated monthly and credited annually.
- A PF balance of ₹10 lakh in an inactive account could lose over ₹80,000 in annual interest.
- This can significantly affect long-term savings, especially for retirees or those between jobs.
3. EPFO’s Advisory to Members
EPFO posted a public alert on X (formerly Twitter) on august 27, 2025:
“If your EPF account remains untransferred or unwithdrawn for 36 months, it becomes inoperative and stops earning interest. Transfer funds to your new account or withdraw if unemployed/retired.”
Key Actions:
- Switching jobs? Transfer your old PF balance to your new employer’s account.
- Unemployed or retired? Withdraw your PF funds before 36 months to keep your savings growing.
4. How to Keep Your PF Account Active
Follow these steps to avoid losing interest:
Update employment details regularly on the EPFO portal.
Transfer PF balance during job changes via the Unified Member Portal.
Check your account status at least once a year via EPFO website or UMANG app.
Withdraw funds if unemployed long-term or post-retirement.
5. What’s Coming Next: EPFO 3.0
EPFO is rolling out a new wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital platform called EPFO 3.0, delayed from june 2025 for testing. It promises:
- Faster claim processing
- UPI-based withdrawals for quick fund transfers
- User-friendly interface and enhanced wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital services
Three top IT firms—Infosys, TCS, and Wipro—will handle implementation, maintenance, and support.
6. Final Takeaway
With PF interest at 8.25%, keeping your account active is crucial for maximizing savings.
- Transfer during job changes
- Withdraw after retirement
- Regularly check your account
A little attention now ensures your hard-earned money continues to grow. With EPFO 3.0 on the way, managing your PF account will become easier and faster in the coming months..jpg)
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