The Employees’ Provident Fund Organisation (EPFO) runs the country’s main provident fund and pension schemes for people working in organised sectors.
Lately, they’ve changed some big rules about how and when you can pull out your provident fun both while you’re still working and after you lose your job.
Here’s the major update: If you lose your job, you can now take out 75% of your total PF balance right away. That’s your share, your employer’s share, and all the interest. The other 25%? You can withdraw that after a year.
There’s also a change for the pension part (EPS) if you’re unemployed. Before, you could take out your pension after just 2 months without a job. Now, you have to wait 36 months.
The government says this helps make sure you and your family have long-term security from pensions. With all these changes, people have a lot of questions. One thing many want to know: What happens to your EPF membership if you’re unemployed?
Your membership sticks, even if you leave your job
Once you join the EPF, you stay a member. Leaving your job doesn’t cancel your membership. Your account stays open; only the monthly payments stop.
How long do you get interest?
If you’re not working and no one’s paying into your PF, you still earn interest for three years. After three years with no new money coming in, your account is called “inoperative.” From that point, you stop earning interest.
Let’s make it clear: Say you quit in June 2022 and don’t get a new job or transfer your PF. You’ll keep earning interest until June 2025. After that, the balance just sits there, no more interest, but your earlier money stays safe.
Even if your account turns inactive, your money doesn’t vanish. The amount you saved, plus the interest you already earned, is safe. You can log in and claim it online whenever you want.
What if you get a new job?
If you start working somewhere else, you can transfer your old PF to your new employer using your UAN. Once you do that, your membership is active again and interest starts rolling in as usual. Plus, your years of service add up smoothly.
What if your account sits unused for too long?
If you let your PF account sleep for years, a couple of things can go wrong. First, you won’t earn any more interest.
Second, it gets harder to manage maybe your old phone number or bank details change, and suddenly you can’t get OTPs or make claims. Sometimes, if the nominee details aren’t updated, claiming your money turns into a headache.
So, if you switch jobs or are unemployed for a while, don’t just leave your PF hanging. Either move it to your new job or withdraw it. That way, you stay in control.
