EPFO Alert: Have you switched jobs but haven’t transferred your old company’s Provident Fund (PF)? Many people assume that interest will keep adding to their old PF account, but this is true only for a limited time.
If your account remains inactive for too long, the interest stops, and your savings don’t grow.
Here’s everything you need to know about the rules and risks of not transferring your PF.
Not Transferring PF Can Cost You
The Employees’ Provident Fund (EPF) is one of India’s most trusted retirement savings schemes, offering tax benefits and decent interest rates.
But if you leave a job and don’t transfer your PF account to your new employer, your money can stop earning interest after a few years.
This can reduce the total amount you save over time.
What Happens to Your PF When You Switch Jobs?
When you join a new company, your PF account does not transfer automatically. You must go to the EPFO Member Service Portal and initiate the transfer yourself.
While your Universal Account Number (UAN) remains the same, the old PF account stays active separately until the transfer is completed.
Will Interest Keep Coming on the Old PF Account?
Yes, but only for a limited time.
According to EPFO rules, if no contribution is made to a PF account for 36 months (3 years) and the employee is not working, the account is marked as inoperative.
Once that happens, the account stops earning interest.
For example: If you left your job in 2020 and didn’t transfer your PF, interest would only be credited until 2023. After that, the amount remains, but no new interest is added.
Currently, the EPF interest rate for 2024–25 is 8.25%, so delaying transfer can lead to a big loss over time.
What You Lose by Not Transferring Your PF
No compound interest: Your money won’t grow after the account becomes inactive.
Withdrawal issues: If your Aadhaar, PAN, or bank details aren’t updated, you might face problems when withdrawing or using the funds.
Missed benefits: You might miss on long-term wealth growth through regular interest accrual.
How to Transfer Your PF Account
Log in to the EPFO Member Portal.
Start the PF transfer process.
Make sure your Aadhaar, PAN, and bank account details are updated.
Check your passbook regularly to track contributions and interest.
Avoid early withdrawals unless absolutely necessary, to benefit from long-term growth.
