New Delhi, September 1, 2025 – If you are an Employee Provident Fund (EPF) member, you may want to check the status of your PF account right away. The Employees’ Provident Fund Organisation (EPFO) has issued an important update, warning that any account that remains inactive for 36 consecutive months will no longer earn interest. This rule makes it crucial for account holders to ensure timely activity, especially after retirement or during job changes.
What Does “Inactive PF Account” Mean?
According to EPFO, a PF account is marked inactive if there is no financial transaction for 36 months—apart from interest credited by EPFO itself. In such cases, the account stops earning further interest.
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After retirement at the age of 55, a PF account remains active only for three years.
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Once a member reaches 58 years, the account is treated as inactive.
This means if you do not transfer or withdraw your PF balance within the prescribed time, your savings will stop earning returns.
Why It Matters for Employees
For financial year 2024–25 (FY25), the government has set the EPF interest rate at 8.25% per annum. Interest is calculated monthly on the closing balance and credited annually into members’ accounts.
Losing out on this interest due to account inactivity could significantly affect long-term savings, especially for retirees and individuals between jobs. For instance, if a member has ₹10 lakh lying in an inactive account, they could lose more than ₹80,000 in annual interest earnings.
EPFO’s Advisory to Members
On August 27, 2025, EPFO issued a public alert via social media platform X (formerly Twitter). The post read:
"Did you know? If your EPF account remains untransferred or unwithdrawn for 36 months, it becomes inoperative and stops earning interest. If you are working, transfer the funds to your new EPF account. If you are not working, withdraw your savings."
The message highlights two key actions every member should take:
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If you switch jobs – Transfer your old EPF balance to your new employer’s account to keep it active.
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If you are unemployed or retired – Withdraw your funds before the account becomes inactive.
What’s Next: EPFO 3.0 Coming Soon
In addition to the advisory, EPFO is preparing to launch its upgraded digital platform, EPFO 3.0. Originally scheduled for June 2025, the rollout was delayed due to extended technical testing.
The new platform promises:
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Faster claim processing
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UPI-based withdrawals for quicker fund transfers
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A more user-friendly interface with improved digital services
To ensure smooth operations, EPFO has shortlisted three leading IT firms—Infosys, TCS, and Wipro—for implementation, maintenance, and ongoing management of the new system.
How to Keep Your PF Account Active
Here are some simple steps to ensure your EPF account does not lapse into inactivity:
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Update employment details regularly on the EPFO portal.
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Transfer your PF balance when changing jobs using the Unified Member Portal.
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Check your account status at least once a year through the EPFO website or UMANG app.
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Withdraw funds if you are not employed for a long duration or have reached retirement age.
Final Takeaway
EPFO’s update is a timely reminder for employees and retirees alike. With an attractive interest rate of 8.25%, keeping your PF account active is essential for maximizing long-term savings. Whether through transfers during job switches or timely withdrawals post-retirement, a little attention can ensure your hard-earned money continues to grow.
Additionally, with EPFO 3.0 expected to make processes faster and more digital-friendly, members can look forward to greater convenience in managing their provident fund accounts in the coming months.
Don’t let your PF account go inactive—take action now to secure your savings and interest benefits.
