A massive ₹9,330.56 crore remains parked in inoperative Employees’ Provident Fund (as of 31 March 2026, the government informed the Rajya Sabha on Thursday (23 July). The disclosure has once again highlighted the large number of employees who have yet to claim or transfer their provident fund savings.
The issue was raised in the Rajya Sabha by Member of Parliament R Girirajan, who sought details on the amount lying unclaimed in Employees’ Provident Fund and other pension accounts, along with the government’s plans to help beneficiaries access these funds.
Responding to the query, Minister of State for Labour and Employment Shobha Karandlaje said that ₹9,330.56 crore was lying in inoperative as of 31 March 2026. She added that the Employees’ Provident Fund Organisation (EPFO) has been undertaking awareness campaigns on social media, as well as Nidhi Aapke Nikat (NAN) 2.0 outreach camps, to educate employers and employees about EPF services and the process for claiming money from inactive accounts.
The sizeable amount locked in such accounts indicates that a large number of workers have either not withdrawn or transferred their EPF balances. If your EPF account has become inactive, you can still initiate the process to recover your funds.
What is an inoperative EPF account?
According to the EPFO, an EPF account is treated as inoperative when no contributions are received for three years after retirement, permanent migration abroad, or the death of the account holder. However, under the current rules, EPF balances continue to earn interest until the member reaches 58 years of age.
Types of inoperative EPF accounts
The EPFO classifies inoperative accounts, excluding transaction-less accounts, into two categories:
- Inoperative accounts without a Universal Account Number (UAN).
- Inoperative accounts linked to an existing UAN.
Does an inoperative EPF account continue to earn interest?
No. As per EPFO guidelines, EPF balances earn interest only until the member attains the age of 58 years. After that, no further interest is credited to the account.
What should you do if your EPF account becomes inoperative?
If you are currently employed in an establishment covered under the Employees’ Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952, you should transfer the balance from the inactive account to your active EPF account through either the online or offline process. Those who have retired can submit a claim to withdraw the accumulated amount in accordance with EPFO rules.
Govt explains EPS pension fund
Karandlaje also clarified the functioning of the Employees’ Pension Scheme (EPS), 2026, stating that it operates as a pooled pension fund. Contributions made by employers, along with the central government’s share, are credited into this common fund, from which eligible pension benefits are paid to members.
“The benefits are paid out of the fund when a member/family becomes eligible. There is no time limit on filing a claim for getting due benefits. Pension/withdrawal benefit under EPS is released along with due arrears, whenever claims are received and settled,” Karandlaje said.