EPFO Interest Rules: Will you get interest on your PF account even if you don’t have a job? See what the government rules say
- What happens when you quit your job?
- How to get interest?
- Keeping your money in EPF is safe
EPFO Interest Rules : EPF is a secure retirement scheme of the Government of India. Both employee and employer contribute 12% of their salary to EPF every month. This money increases your savings and also earns annual interest on it. The interest rate is fixed every financial year. Currently, the interest rate for 2025-26 is 8.25%. Many people think that if you lose your job and don’t get a new job, your EPF account balance does not earn interest. But this is not entirely true. As per the rules of the EPF Organization (EPFO), even if you are unemployed and not making new contributions, your old EPF balance continues to earn interest.
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What happens when you quit your job?
When you quit your job, the new contribution stops. Your old EPF account is not closed. Money stays the same. If there is no new transaction for 36 months i.e. 3 years then the account is declared inactive. But account becoming inactive does not mean that interest has stopped accruing.
Does interest keep rising?
Yes, you continue to earn interest. As per EPFO rules, your EPF account continues to earn interest till you reach the age of 58, even if no new amount is deposited. In 2016 and 2017, the government had clarified that all accounts will continue to earn interest till you reach the age of 58. After the age of 58, the account is considered inactive and no interest is paid thereafter. In some cases, you can earn an additional three years of interest if the money is not withdrawn. You are 35 years old and recently quit your job. 5 lakhs in your EPF. This amount will earn interest at around 8.25% per annum for the next 23 years i.e. till you turn 58. This interest is charged on a compounding basis, which means you continue to earn interest on the interest.
How to get interest?
Interest is determined annually. Usually credited to the account at the end of the year. It is calculated on monthly balance. Interest is tax free.
Remember these things
Account transfer – If you get a new job, transfer your old EPF account to the new company. This keeps everything in one account and makes it easy to manage.
Withdrawal Rules – In case of unemployment, you can withdraw 75% amount immediately. The remaining 25% amount can be withdrawn after one year. But if the money is withdrawn before the due date, the interest benefit is reduced. It is better to keep the money as it is, so that the interest will continue to accrue.
After 58 years – You can withdraw the entire amount after retirement. In case of non-withdrawal, interest may stop accruing.
Check Online – Check your account on Umang app or EPFO website (epfindia.gov.in). Download the passbook and check interest.
Small Accounts – EPFO is running a scheme for automatic liquidation of small inactive accounts.
Keeping your money in EPF is safe
Keeping your money in EPF is safe. It offers better interest rates than bank FDs and is guaranteed by the government. Even if you are unemployed, your money keeps growing. Premature withdrawal reduces the compounding benefit. Keep your account active even if you are not employed. Also, check your passbook regularly. If you face any problem, contact EPFO helpline or your nearest office. Link your UAN immediately as soon as you get a new job.
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