EPFO Update: People working in the private sector often fear losing their jobs. However, sometimes people voluntarily leave their jobs and take a long break. After losing or quitting your job, your employer does not deposit money into your PF account.
This raises the question: if they quit their job and haven’t worked for 4-5 years, will they still receive interest on their PF funds? Today, we’ll answer this question.
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Do you get interest on PF after losing my job?
In today’s ever-changing technology, many companies periodically lay off employees. Many people become unemployed. It takes years for some to find a job. Many people don’t even find a job at all. In such times, their PF deposits are their only support.
For years, salaried employees have believed that PF interest ceases after three years of inactivity. This belief has led many to withdraw their funds too soon. However, you should know that interest on your PF remains available even after you leave your job. This is a fact that few people know.
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We often see, hear, or read on social media that interest on PF deposits only accrues for three years after leaving your job. But this only applies until you retire at age 58. However, if you lost your job earlier and haven’t contributed to your PF account for several years, you’ll continue to earn interest until you reach age 58.
The frequently mentioned three-year limit has been misunderstood for years. This confusion stems from old guidance that stated that interest could cease after three consecutive years without any contributions. However, the government clarified this position in 2016 when it amended the EPF rules.
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The three-year general rule comes from old EPFO guidelines and FAQs, which stated that interest could cease after three consecutive years without any contributions. However, the government has clarified that after the 2016 amendment, an account will be considered inactive only after the age of 58, and interest will cease from that time.
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