EPF Account: After retirement, EPF deposits do not always accrue interest. Let's find out when a PF account is considered inactive and when interest accrual may stop, according to the EPFO.
EPFO Rules: After retirement, people often leave their EPF (Employees' Provident Fund) account unwithdrawn for a long time because they believe the money in the account will earn continuous interest. But did you know that EPFO rules set certain conditions for this? According to the Employees' Provident Fund Organization (EPFO) rules, after a certain period of time, a PF account can become inactive and interest on it can stop. Let's learn about this EPFO rule.
When does the EPF account become inactive?
According to EPFO rules, your EPF account may become inactive when new contributions stop coming into it and you don't withdraw funds within the stipulated time. However, situations such as retirement, permanent settlement abroad, or the death of an EPFO member can also result in an account becoming inactive.
What happens if you retire before 55?
If you retire before the age of 55, your PF account can earn interest until you reach the age of 58. For example, if you retire or leave your job at the age of 50, you can earn interest until you reach the age of 58. However, after the age of 58, the account may be considered inactive.
However, if you retire at age 55 or later, your account typically continues to earn interest for three years after retirement. For example, if you retire at age 58, you may receive interest until approximately age 61. After this, your account may be considered inactive and interest accrual may stop.
What should EPF members do?
- Keep checking your PF balance from time to time through UAN.
- Keep your Aadhaar, bank account and KYC information updated.
- When changing jobs, make sure to transfer your PF balance.
- Be sure to get information about the rules related to withdrawal and interest after retirement.
- Keep all records related to EPF account and withdrawal safe with you.
