EPFO Latest News: Interest benefits for dormant PF accounts have been revised. Find out what the new EPFO rules mean for inactive Provident Fund account holders and how it affects your savings.
PF Interest Update: Every working person should save money in the Provident Fund (PF), which acts as a safety net in times of need. Concerns regarding interest accrual on inactive accounts are raised by the fact that job transitions frequently result in a halt in PF contributions. Let us examine the EPFO regulations that apply here.
EPFO Latest News: After three years of inactivity, does interest cease?
The EPFO makes it clear that interest on your PF account continues to accrue until you turn 58, regardless of contributions, dispelling the myth that interest stops after three years of inactivity. You can continue to be a member of PF even after you quit your employment.
Why Does Interest Still Exist in the Absence of Contributions?
The Ministry of Labor and Employment updated the guidelines for dormant PF accounts in July 2017. Accounts are no longer active until a member reaches the age of 58. Interest keeps accruing until then, regardless of contributions. Remember that your employer matches 12% of your monthly salary contributions to your PF account.
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When Is It Possible to Take Out All of Your PF?
Under certain conditions, such as when you turn 58 or have been unemployed for more than two months, you are eligible to withdraw 100% of your PF balance.