Provident Fund Dilemma: Does Your PF Still Earn Interest If Left Untouched?

What Happens to PF if It Is Neither Withdrawn Nor Transferred?

I mean, will the interest continue to get credited to PF accounts for as many years as possible if no transaction is taking place?

Regards,
Vidya

You will get interest at the rate of 9.5%. However, recently, there has been an amendment in the PF board's policy. According to the new rule, if there are no transactions in the PF account for three years, then no interest will be calculated on the PF amount after that period.

Interest decided by the Central PF Trustees for 2010-11 is 9.5%, whereas before that, the interest rate was 8.5%.

Interest Accumulation on Inoperative Accounts

The disallowing of interest accumulation for inoperative accounts from the 37th month onwards will come into force with effect from 01.04.2011.

Regards,
Abbas.P.S

Dear friends,

Please find below an amendment to the EPF Scheme, which states that interest shall not be credited to the account from the day it has become an inoperative account.

Employees' Provident Funds (Amendment) Scheme, 2011

G.S.R. 25(E).-- In exercise of the powers conferred by Section 5, read with sub-section (1) of Section 7 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, further to amend the Employees' Provident Funds Scheme, 1952, namely: --

1. (1) This Scheme may be called the Employees' Provident Funds (Amendment) Scheme, 2011.
(2) It shall come into force from the 1st day of April, 2011.
2. In the Employees' Provident Funds Scheme, 1952, (hereinafter referred to as the said Scheme), in paragraph 60, after sub-paragraph (5), the following sub-paragraph shall be substituted, namely: --
"(6) Interest shall not be credited to the account of a member from the date on which it has become an Inoperative Account, under the provisions of sub-paragraph (6) of paragraph 72."
3. In the said Scheme, in paragraph 72, in sub-paragraph (6): --
(a) for the words "but no claim has been preferred," the words "but no application for withdrawal under paragraphs 69 or 70 or transfer, as the case may be, has been preferred" shall be substituted;
(b) for the words "three years," at both the places where they occur, the words "thirty-six months" shall be substituted.

F. No. S-35012/01/2010-SS-II
S.K. DEV VERMAN, Jt. Secy

"What happens to PF if it is neither withdrawn nor transferred? I mean, will the interest continue to get credited to PF accounts for as many years as possible if no transaction is taking place?

Regards,
Vidya"

You may not get interest on your PF accumulation w.e.f. 1/4/11 if there are no transactions in your PF account. It is better to get it transferred or withdrawn.

Regards,
jmraju

Hello everyone,

I have some queries about PF withdrawal. I was working with one of the leading insurance companies in a full-time employee role. I left that company after 8 months. Then, I used the same PF number in another company where I worked for 7 months. Subsequently, I joined a third company using the same PF number and stayed there for 2 years. Now, they are saying that I will only receive the PF from this current company and not from the previous ones because they have created a new PF account here. What should I do to withdraw the amount? Please help.

Dear Harshalwani,

Please note that when you switch to a new company, you need to have your current employer sign Form 13 and deposit it with the EPF department. This will transfer the EPF amount from your previous company's account to your new company's EPF account. By doing this, all your EPF accounts will be consolidated, and you will receive the total amount upon withdrawal.

Dear Abbas,

I left my company on 01/12/2005, and my PF account has been inoperative since then. Now, due to the recent PF rule change effective from 1/4/2015, I am unclear about the interest calculation. Should I expect to receive interest until 1/4/2011, 01/12/2008, or 01/04/2014?

Could you please provide some clarification on what should be expected in this situation?

Thanks,
Naveen.

EPF neither withdrawn nor transferred, the EPF account will be treated as inoperative, and no interest should be credited to the account from the date on which the EPF account has been inoperative.

Thanks & Regards,

From,
Sumit Kumar Saxena

Dear Naveen,

The decision to give interest to inoperative PF accounts, restricted up to 3 years, came into force w.e.f. 1.4.2011. Therefore, you may receive interest up to 31.03.2014.

Abbas P.S

Hi, I was working for IBM Daksh in Bangalore from 2006 until November 2009. I completely forgot about PF withdrawal. Is it possible for me to claim my PF amount? If so, could you please let me know the procedure.