Confused About PF Interest Deductions After Moving Abroad? Let's Discuss Your Experience

Hi, I left India in March 2014 as I was deputed to the US. I still stayed with the same employer (went through payroll transfer) and left employment in September 2019. My provident fund contributions stopped in March 2014.

Now, recently I withdrew my PF (all these years I was getting interest), but they adjusted and removed all interest payments made to my account from 2017 (including the credit I received in March 2017). How is this correct? I thought permanent migration abroad comes into play only if I took up a new job. Also, even if that was applied, I should get the interest given in March 2017 (considering it was for the 2016-17 period)?

Hi, If no contribution is received into a PF account for 3 consecutive years, the account shall not earn any interest after 3 years from the stopping of contribution. It has no relation to your permanent migration. The same rule applies to a member who left a job in India wherein no contributions were received for 3 consecutive years.

Thanks for your response. Two questions still:

1. There was an amendment in 2016 that made interest available for all except migration abroad or death. Has that changed again?

[URL]https://www.thehindu.com/business/Economy/Inoperative-provident-fund-accounts-to-earn-interest/article14181640.ece/amp/

2. Even if there is no interest for 3 years, they should give interest for 2017 (which is for 2016-17), right?

Hi, what was the status of your PF when you left India in March 2014? I hope your employer marked the exit date by March 2014 as you went through a payroll transfer, or did your PF continue as NCP?

EPF Interest Rules

"Under the new rules, EPF accounts will continue to get interest credits for three years after members reach the age of 58 years. This provision ensures that EPF members who choose not to withdraw their deposits immediately at retirement will continue to earn interest until the age of 61. A similar provision exists under the General Provident Fund (GPF) for government employees, allowing them to earn interest for 12 months after they retire at the age of 60."

"Accounts will become inoperative only in cases where employees settle abroad permanently and fail to withdraw their account balance within 36 months. Similarly, in the case of an EPF member's death, the interest on their savings will be credited for a period of three years after his or her death."

So, in your case, PF interest is applicable for 3 years, which is up to February 2017.

Provident Fund Accounting Year

The Provident Fund's accounting year runs from March to February of the next year, from the 1st of March to the 28th of February. The interest collected over the 12 months is credited in a lump sum amount on the 31st of every March.

If interest is not paid up to February 2017, you may raise a grievance at https://epfigms.gov.in/.

I really appreciate your inputs on this tricky topic. Based on how my employer works, it is likely that they have made my PF NCP. What would this mean for my interest? Will I be entitled to the entire amount until withdrawal?

Hi, you can check this through your UAN portal. Please verify the exit date with your last employment, whether it is March 14 or a later period with no contribution (no contribution period). The exit date is important to determine how long the PF account has been inactive without contributions.