Will dormant EPF accounts start earning interest again from 2011


Will dormant EPF accounts start earning interest again from 2011?


All dormant EPF account will earn interest from 1st April 2016. The interest payment was stopped in 1st April 2011 but there is no clarity on retrospective interest rate payment. So as of now expect interest rate starting from 1st April 2016 unless a final decision is taken for the interest for older period.


Hi Sohini,

As per recent amendments, if an EPF account has been lying idle for 36 months or more, it will not become automatically inoperative. It will continue to accrue interest. The provisions of the EPF scheme have now been amended to change the definition of inoperative. As per the provisions, an EPF account will become inoperative only if the employee retires from service after reaching the age of 55 years or if they go abroad permanently. In both these cases, if an application for withdrawal of the EPF is not made within 36 months, then the account becomes inoperative. So, even if you are terminated or leave a job, your EPF account will be active and you will continue to earn interest on your EPF account.

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