EPFO alert: No interest is paid on inoperative accounts after 36 months; know what to do

For the financial year 2024-25 (FY25), the government has set the interest rate on Employees' Provident Fund (EPF) at 8.25% per annum. The interest is calculated monthly on the closing balance and is transferred to beneficiaries’ bank accounts once a year. 

However, no interest is paid if an account remains inactive for 36 months (three years), which means that there is no transaction made from the account for three years. 

Note: The interest that is credited periodically into members’ bank accounts does not count as a transaction for an EPF account to be active.

As per the EPFO, transaction-less accounts are those accounts where no transaction (no debit or credit other than periodic interest) has taken place in 36 months.  

Further, after an individual retires at the age of 55, the account remains active for only three years. This means that if your EPF account becomes inactive when you turn 58. 

So, if you’re working, you must transfer your EPF account to your new job. In case you’re not working, you must withdraw your EPF. 

“Did You Know? Your EPF account becomes inoperative after 36 months if not transferred or withdrawn. No interest is paid on such accounts.  If you’re working – transfer it to your new EPF account. If you’re not working – withdraw your EPF,” EPFO said in a social media post on X on August 27, 2025.

EPFO 3.0

The updated platform will offer enhanced services to subscribers with efficient claim processing and many digital features, including UPI withdrawals. 

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