Interest on Inactive EPF account after its merged to active account ?

POSTED BY snaresh ON February 18, 2014 2:08 pm COMMENTS (12)

I understand there was a PF department ruling/circular in year 2009 or sometime, mentioning that Inactive accounts will not earn any interest.

However in Dec 2012, Mint published this article citing Mr. Rajesh Bansal, Addl. PF Commissioner, in this PF commissioner mentioned that Inactive accounts will also earn interest if inactive account integrated/merged in active account.

However I didn’t see any further information about this, and nobody seems to be aware of this. Can you please let me know if you have further information on this?



12 replies on this article “Interest on Inactive EPF account after its merged to active account ?”

  1. Satish says:

    Hi Snaresh

    Do you have any update on interest paid on integration of inactive EPF account to active EPF account?. I’ve also applied for transfer of my inactive EPF account amount to Active EPF account . My earlier PF account is inactive for almost ten years and opened my eyes on now and not sure , what is the interest rate paid for inactive account amount. Please share if any update on this


  2. snaresh says:

    @Tarun, I do not have any update. PF department conveniently ignored the question.

    @Gur_Singh, Yes, that’s what should happen but due to lack to clarity at PF department, its not happening. Unfortunately I was unable to locate any PF department circular pertaining to this news in


    1. samar.baruah says:

      Hi Naresh, Any update on the same?? As I’ve also applied for transfer of my inactive account today. Did you file RTI? Any reply from EPFO? Please share your no if possible.

  3. gur_singh says:

    I had one inoperative epf account from my earlier job which I left on July 2009. (The last entry in my epf account due to some pay arrear was in November, 2009). Subsequently, I joined another job in July, 2009 itself and got a new epf account number. I have not applied for transfer of my earlier epf account to the new one. It has been five years. Now I have applied for the transfer. Through your site I learnt that I will not get interest after 36 months of leaving my earlier job i.e. for 2 years interest have not been credited with my old account. But while surfing net I came to know that there is also some order on it that if one transfers his inoperative account to the new one even after 36 months then he/she will get interest with retrospective effect for the period beyond 36 months. Can you elucidate on it. Will I be able to get interest for the entire 5 years.

  4. tarun says:

    Hi Snaresh, can you pls share update on response from EPF office. Mine is similar case and have filed transfer request last week.

  5. snaresh says:

    ok. Thanks Ashal.

  6. ashalanshu says:

    Dear Snaresh, to get the clarity on your account and interest there on, you may file an RTI application.



  7. snaresh says:

    Hmmm… But how we know PF department has added interest in retrospective manner.

    Last year, one of my inactive account was integrated with Active one and there is no interest is transferred as mentioned in Annexure K.

    Now if they do it after issuing Annexure K, its very difficult for subscriber to check if interest in retrospective manner is added to new account. Unsure how do I verify this.

  8. ashalanshu says:

    Dear Snaresh, your original query was not about retrospective manner hence I answered that way. Yes, once the money is proved Active, the unpaid interest ‘ll also be added up.



  9. snaresh says:

    Yes, that’s correct. once money is moved in Active account, it will also earn interest same way.

    But if you read this article in Mint. It clearly mentions about interest to be given in retrospective manner, which means interest to be provided for duration in which interest wasn’t provided (due to ruling of stopping interest after 3 yr). I am pasting relevant comments from this statement here

    “If an employee integrates an old, inoperative account with the active account he or she is currently contributing to, the government will pay
    interest on the inoperative accounts, said Rajesh Bansal, additional PF commissioner. “This will be done in a retrospective manner. But if you
    withdraw your idle money from the previous account(s), then you will not get the interest,” Bansal said”

    So this clearly mentions about calculating it in retrospective manner

  10. ashalanshu says:

    Dear Snaresh, once the inactive account’s money is part of an active account after transferring, it ‘ll also earn interest as usual. The money in inactive accounts ‘ll stop earning any interest after 3Y from the last activity.



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