The issue was raised by Member of Parliament R Girirajan, who sought details on unclaimed EPF and pension account balances, along with steps being taken by the government to help beneficiaries access these funds.
Responding to the query, Minister of State for Labour and Employment Shobha Karandlaje said the Employees’ Provident Fund Organisation (EPFO) has been undertaking awareness campaigns through social media and Nidhi Aapke Nikat (NAN) 2.0 outreach camps to educate employers and employees about EPF services and the process for claiming balances from inactive accounts.
The figure stresses that a significant number of EPF subscribers may not have withdrawn or transferred their savings after changing jobs or leaving employment.
However, an inoperative EPF account does not mean the balance is forfeited, and eligible members can still claim the amount by following the prescribed procedure.
What is an inoperative EPF account?
According to the EPFO, an EPF account is treated as inoperative when no contributions are received for three years following retirement, permanent migration abroad, or the death of the account holder. However, under the current rules, EPF balances continue to earn interest until the member reaches 58 years of age.
Types of inoperative EPF accounts
The EPFO classifies inoperative accounts, excluding transaction-less accounts, into two categories:
- Inoperative accounts without a Universal Account Number (UAN)
- Inoperative accounts linked to an existing UAN
Does an inoperative EPF account continue to earn interest?
No. As per EPFO guidelines, EPF balances earn interest only until the member turns 58. After that, no further interest is credited to the account.
What should you do if your EPF account becomes inoperative?
If you are currently employed in an establishment covered under the Employees’ Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952, you should transfer the balance from the inactive account to your active EPF account, either online or offline. Those who have retired can submit a claim to withdraw the accumulated amount as per EPFO rules.
Govt explains EPS pension fund
Karandlaje also clarified how the Employees’ Pension Scheme (EPS), 2026 functions, describing it as a pooled pension fund. Contributions from employers, along with the central government’s share, are credited into this common fund, from which eligible pension benefits are paid out to members.
She noted that there is no fixed deadline for filing a pension claim, and that dues, once claims are settled, are released along with any accrued arrears.
