The government has fixed an 8.25% annual interest rate on the Employees Provident Fund (EPF) for FY 2024-25, based on monthly closed balance and is transferred to annual accounts. But EPFO has warned that if an EPF account remains inactive for 36 months continuously, that is, there is no transaction on it, the payment of interest on it will be stopped. Because of this, the holders of the account will have to be careful in time so that their savings remain safe.
When an employee retires at the age of 55, his EPF account remains active for three years i.e. the account earns interest till the age of 58 years. If no fund transfer or withdraws during this period, the account will become inactive and the interest will stop paying. EPFO has also given this information on social media and said that those who are still working should transfer their old EPF to a new EPF account, while employees who are unemployed or have retired should take their EPF amount so that they can avoid damage.
In addition, EPFO is preparing to launch its new digital service EPFO 3.0, in which the user will have a rapid claim processing, modern features like fund withdrawal through UPI. The service will be implemented in collaboration with large IT companies like Infosys, TCS and Wipro. The EPFO has asked the account holders to regularly check their account status and keep the necessary transfer and withdrawal from time to time so that they will get interest on their funds and the future is protected.
In short, if the EPF account remains inactive for 36 months, the FP account stops paying interest. Therefore, it is necessary to transfer accounts while changing the job and withdraw money in the event of unemployment or retirement so that savings can be safe and maximum interest can be obtained.