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India finds ₹8,500 crore in 21 lakh inactive EPF accounts
21 lakh EPF accounts holding ₹8,500 crore are inactive. The government blames non-filing of claims and says a new auto-claim feature under the 2026 scheme will help.
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More than 21 lakh Employees' Provident Fund accounts were marked inoperative in the year through March 2024, holding about ₹8,505 crore in unclaimed accumulations, the government told parliament Thursday.
Minister of State for Labour and Employment Sushri Shobha Karandlaje, responding to a question from lawmaker Neeraj Dangi, said the figures come from the Employees' Provident Fund Organisation's consolidated annual accounts. The number of inactive accounts has climbed sharply over recent years. In 2022-23, roughly 17.4 lakh accounts held about ₹6,805 crore. A year earlier, 13.4 lakh accounts held just under ₹5,000 crore.
Claim settlements have risen only modestly over the same period, the data showed.
The minister attributed the rise primarily to members not filing claims after leaving service. Employees typically have two options when switching jobs: transfer the provident fund balance to the new employer, or withdraw the money. Those with at least five years of continuous service can withdraw without tax liability. Accounts become inoperative when the member turns 58 and still has not claimed the balance; after that age, interest stops accruing.