Employees likely to earn interest on inoperative PF accounts

An inoperative Employees' Provident Fund Account may also earn interest on the earnings parked with the retirement fund, as the Employees Provident Fund Organisation (EPFO) is to take a decision on the same.

Last Updated: Mar 29, 2016, 11:39 AM IST
Employees likely to earn interest on inoperative PF accounts

Zee Media Bureau

New Delhi: An inoperative Employees' Provident Fund Account may also earn interest on the earnings parked with the retirement fund, if the Employees Provident Fund Organisation (EPFO) approves a proposal for the same on Tuesday.

The inoperative accounts are those accounts where no contributions have been made by employee or employers for 36 months.

As per the Economic Survey 2015-16, out of around 15 crore EPF accounts, over 9 crore - employee provident fund accounts have been found inoperative.

Employees were stopped paying interest by the Retirement Fund body from April 2011 onwards.

There is need for clarity on the interest earning on EPF because the government had announced earlier that if an employee remained unemployed for more than two months, he would be able to withdraw only his own contribution and the interest earned.

He will be able to withdraw the Employer's contribution in the EPF only after attaining 58 years of age.