EPFO Relief for Workers: Government to Refund Money From 7 Lakh Inactive PF Accounts

Kokila Chokkanathan
The Ministry of Labour and Employment has announced a major relief initiative for employees with inactive Employees’ Provident Fund Organisation (EPFO) accounts. As part of a clean‑up and member‑friendly reform effort, the government will refund unclaimed PF money lying in small inactive accounts automatically — without any application from the subscribers.

🧾 What Is Happening?

Under the new decision:

  • The government will settle over 7.11 lakh inactive EPF accounts that carry a balance of ₹1,000 or less.
  • A total of about ₹30.52 crore lying unclaimed in these accounts will be refunded to their account holders or legal heirs.
  • The refunds will be credited directly to Aadhaar‑linked bank accounts of members whose EPF accounts are seeded with Aadhaar.
This is part of a broader EPFO clean‑up drive aimed at making the system simpler and ensuring small balances do not remain unused indefinitely.

📌 What Is an Inoperative EPF Account?

An EPF account is classified as inoperative when:

  • No contribution (from the employee or employer) has been received for 36 consecutive months after the member becomes eligible for final settlement — typically after retirement, migration abroad, or in unfortunate cases, death.
  • Accounts with no activity for a long time stop earning interest once they become inoperative.
💰 Who Will Get the Refund?

✔ Subscribers with inactive EPF accounts holding ≤ ₹1,000 — the amount will be directly credited to their Aadhaar‑linked bank account.
✔ If the account holder is deceased — the refund will go to the nominee or legal heir.

Importantly, no claim form or document submission is required from members — the process is automatic and designed to be hassle‑free.

🚀 Why the Move Was Announced

This initiative is being seen as part of wider efforts to:

  • Modernise EPF services and reduce paperwork.
  • Auto‑settle small inactive accounts that often go forgotten when people change jobs or stop contributing.
  • Ensure rightful PF money reaches workers and their families swiftly.
    It is being implemented as a pilot phase, with plans to address larger inactive accounts in later stages.
🧠 Quick Summary

  • 🕒 Over 7.11 lakh inactive EPF accounts with low balances will be cleared.
  • 💸 ₹30.52 crore will be refunded automatically.
  • 📱 No claim or paperwork required.
  • 🏦 Amount credited to Aadhaar‑linked bank accounts of members or nominees.
This move brings welcome financial relief to many workers whose small PF balances were dormant for years — helping them reclaim money that otherwise would remain unclaimed in the system.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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