Under India’s Employees’ Provident Funds Scheme, 2026, a member who retires after age 55 has 36 months from when the balance becomes payable to apply for payment; if no application is filed, the balance moves to an inoperative account and stops earning interest.
The 36-month period runs from the date the balance becomes payable and applies when a member has not filed a withdrawal application. The scheme provides for payment by debiting the inoperative account. It does not describe the transferred balance as forfeited, but this clause does not set a separate deadline for requesting payment.
Interest ends on the date the account becomes inoperative. An Aug. 4, 2026, corrigendum changed the interest clause’s cross-reference from paragraph 54 to paragraph 55, where the inoperative-account provision appears in the June 29 notification.
The Ministry of Labour & Employment’s March 2 release described the earlier inactivity test as three continuous years without contributions, measured from age 55 or retirement, whichever came later. It predated the June 29 notification. The 2026 scheme instead measures the period by an unfiled withdrawal application and the date the balance becomes payable.
The Employees’ Provident Fund Organisation (EPFO) said in a July 1 circular that offices should credit 8.25% annual interest for FY 2025-26, following approval by the Central Government conveyed through the ministry. That rate applies to FY 2025-26 and does not establish the rate for later years. The ministry said EPF rates had been above 8% for several years because of returns from exchange-traded funds (ETFs) and other investments.
The March release also outlined a pilot to automatically initiate settlement of inoperative accounts with balances of Rs 1,000 or less, covering about 1.33 lakh accounts worth nearly Rs 5.68 crore. The ministry said the plan aimed to reduce delays and speed payment of dues. Later phases would depend on the pilot’s success, with no expansion date stated.
