Will PF Interest Stops After 3 Years from Leaving Job
PF interest will not stop after 3 years from the date of leaving your job. As per the amendment made to paragraph 72(6) of the EPF Scheme, 1952 by the Government vide notification no. G.S.R. 1065 (E) dated 11.11.2016 interest will be credited up to 58 years of EPF member’s age.
So even though you don’t contribute to PF after leaving your job, your PF amount earns interest every year announced by EPFO, which is better than the FD interest rates of all banks.
Earlier PF accounts used to become inoperative if there is no transaction in the PF account for 3 years. But now the rules for becoming inoperative have changed.
When will EPF Account Become Inoperative
EPF accounts become inoperative after 58 years of employee’s age.
The 3-year rule is applicable in the following cases:
An EPF account will become inoperative when the EPF member retires from his job after 55 yrs of age and doesn’t withdraw his PF within 3 years, then that account will become inoperative after 58 years and no interest will be credited to that account.
Similarly, if the member dies after 55 yrs of age (or) when he moves abroad and doesn’t contribute to the EPF scheme then also the PF account will become inoperative after 58 yrs of the member’s age.
But in all these cases up to 58 years, the PF accounts earn interest.
(Don’t get confused, remember you will get PF interest up to 58 yrs of your age, even though you leave your job.)
Download EPF Interest on Inoperative Accounts Circular
Download Government vide notification no. G.S.R. 1065 (E) dated 11.11.2016
FAQs on EPF Inoperative Accounts
What is PF inoperative account
The PF account which doesn’t earn interest is known as PF inoperative account. Your PF account will become inoperative after 58 yrs of your age.
After leaving my job, how long will my EPF account earn interest
Up to 58 yrs of your age, interest will be credited to your EPF account even if you do not contribute to the EPF scheme.
How to active my inoperative PF account
With new rules, your PF account will not become inoperative up to 58 yrs of your age. But whenever you join in a new job transfer your old PF amount to your new PF account, but continue the same UAN number.
Can I withdraw my PF whenever I want after leaving the job
Yes, you can withdraw your PF any time after 2 months from your last working date in your company.
What is EPF retirement age?
EPF retirement age is 58 yrs, after reaching 58 yrs of your age you can withdraw your PF amount and if you have 10 yrs of total PF service then you can be eligible for a monthly PF pension amount.
Is it Safe to Keep my EPF amount unclaimed for a long period?
If you do not want to work in the future, it is better to claim the EPF amount and invest in other better options.
Because the EPF rules change continuously, which may cause problems in withdrawing your PF amount in the future.