The government has fixed 8.25% annual interest on EPF for 2024-25. The interest is calculated every month on your account balance and added once a year. If your EPF account is inactive for 36 months with no deposits or withdrawals, interest will stop. EPFO shared this rule on social media on 27 August 2025.
What is an Inactive EPF Account?
An EPF account is called inactive when there is no deposit or withdrawal for three years, except for the interest credit. After retirement, the EPF account stays active for 3 years. For example, if you retire at 55, your account will earn interest until 58. After that, it becomes inactive. If you change your job, you should open a new EPF account and transfer the old one. If you are not working now, it is better to withdraw your EPF funds to avoid losing interest.
Keep Your EPF Account Active
EPFO has said on social media that if your account is inactive for more than 36 months, it will become inoperative and no interest will be given. Working members should transfer their old EPF account to a new one. Non-working members should withdraw their funds to save interest.
EPFO 3.0 Coming Soon
EPFO will soon launch its new digital platform EPFO 3.0. It was planned for June 2025 but got delayed due to technical reasons. EPFO 3.0 will make claim processing faster and allow new features like direct EPF withdrawal through UPI. Infosys, TCS, and Wipro will help with this project.