Does EPFO Give Interest on Inoperative Accounts?
The Employees’ Provident Fund Organization (EPFO) is a well-known institution in India that manages the Employees’ Provident Fund (EPF) and the Employee Pension Scheme (EPS). One common question that often arises among employees is whether EPFO provides interest on inoperative accounts. In this article, we will delve into this topic and provide a comprehensive answer.
Understanding Inoperative Accounts
An inoperative account refers to an EPF account that has not been active for a period of 36 months. During this inactive period, the employee may not have contributed to the account, and the employer may not have deposited the required contributions. As a result, the account is considered inoperative.
EPFO Interest on Inoperative Accounts
Yes, EPFO does give interest on inoperative accounts. However, the interest rate may differ from the interest rate provided to active accounts. According to the EPFO rules, interest is calculated on the total balance of the account and is credited to the account quarterly.
Interest Rate for Inoperative Accounts
The interest rate for inoperative accounts is generally lower than the interest rate for active accounts. As of the time of writing this article, the interest rate for inoperative accounts is 8.5% per annum. It is important to note that the interest rate is subject to change, and the EPFO may announce a new rate from time to time.
Procedure to Check Interest on Inoperative Accounts
To check the interest on your inoperative EPF account, you can follow these steps:
1. Visit the EPFO website (www.epfindia.gov.in).
2. Click on the “Member Login” tab.
3. Enter your user ID and password to log in.
4. Once logged in, navigate to the “e-Passbook” section.
5. You will find the interest details for your inoperative account in the “Interest Details” section.
Conclusion
In conclusion, EPFO does give interest on inoperative accounts. However, the interest rate may be lower than the rate for active accounts. Employees are encouraged to check their interest details regularly and ensure that their EPF accounts remain active to avail of the higher interest rates.
