EPFO Rules on EPF Interest After Leaving Job: For millions of members of the Employees Provident Fund Organization (EPFO), information on interest earned on EPF account after leaving job or retirement is very important. People generally believe that the account stops accruing interest on leaving the job, but according to EPFO ​​rules, mere cessation of monthly contributions does not stop the interest. The account balance earns interest for a specified period.

Interest on the balance continues even after leaving the job

If an employee quits, becomes unemployed or takes a career break, no new contribution is credited to his EPF account. However, the old amount deposited in the account continues to earn interest as per the official interest rate. This means that there is no direct relationship between cessation of contributions and cessation of interest. Hence, employees’ interest is protected even during periods of temporary unemployment or job change.

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Interest is paid up to 36 months after retirement

As per EPFO ​​rules, when an employee retires at the age of 55 years or above, his EPF account is considered active for 36 months (3 years) from the date of retirement. During these 36 months, interest is accrued on the amount in the account. If withdrawals are not made or the claim is not settled within this period, the account becomes “dormant” after 36 months and interest ceases thereafter.

Dormant account and advice for employees

A dormant account is an EPF account in which no transaction or claim has been made for a long time. EPFO stops paying interest on such accounts, but the principal amount deposited in the account remains fully protected. As per expert advice, while starting a new job the old EPF account should be transferred to the new account using UAN. It is imperative to withdraw the amount by filing a claim on time to avoid loss of interest after retirement.