EPFO Update: If you are employed and a PF contribution is deducted from your monthly salary, this information is particularly important for you. While the money deposited in an Employees’ Provident Fund (EPF) account earns interest, it is crucial to understand the rules regarding interest accrual after leaving a job or upon retirement. Many people wonder how long their PF account will continue to earn interest after they leave their job and when it becomes deactivated or “inoperative.”
A key point to note is that the accrual of interest and the status of the account as “inoperative” are two separate matters; therefore, one should not assume that interest payments will stop immediately simply because a job has ended or funds have not been withdrawn for a long period. Let us explore this topic in detail.
Retirement before the age of 55?
If an employee retires before reaching the age of 55, the accrual of interest on their PF account stops immediately. However, if an employee retires at the age of 50 and leaves the accumulated funds in their PF account, the account will continue to earn interest until they reach the age of 58. The rule regarding account deactivation upon attaining the age of 58 applies if the employee does not make a claim by that time.
What is the rule for retirement at age 55 or older?
If an employee retires at the age of 55 or older, the determination of when the PF account becomes inoperative is based on the date of retirement and the employee’s age. According to EPFO rules, an account becomes inoperative if no claim is filed within 36 months following the later of two dates: the date the employee turned 55 or the actual date of retirement. For instance, if an employee retires at the age of 60, their account will be maintained until they reach the age of 63.
How to check PF balance and account status
To verify their PF balance, an employee needs to visit the official EPFO website. Through this platform, they can also access information regarding various PF-related services. Additionally, EPFO members can view their account balance and accrued interest by logging into the member passbook portal.