Pending PF: EPFO to refund Rs 30.52 crore from 7 lakh inactive accounts, aiding lakhs of employees

The Employees’ Provident Fund Organisation (EPFO) has announced a significant move that will directly affect lakhs of employees and their families with inoperative accounts. Following a recent review by the Ministry of Labour and Employment, officials indicated that over 7.11 lakh inactive EPFO accounts, each carrying a balance up to Rs 1,000, will be cleared and the funds refunded to respective account holders or their legal heirs. This decision, according to sources cited by the Press Trust of India (PTI), is expected to provide much-needed relief to beneficiaries who have awaited resolution for unclaimed provident fund balances.

An inoperative EPF account is classified as such when no contribution has been received for three years following retirement, permanent migration abroad, or the account holder’s death. As per EPFO’s current guidelines, all accounts will continue to accrue interest until the account holder reaches the age of 58. However, once classified as inoperative, the account ceases to earn interest, underscoring the importance for members and their families to claim the dues in a timely manner.

The Ministry has confirmed the total amount to be refunded stands at Rs 30.52 crore, lying dormant in over seven lakh inoperative accounts. Officials in the labour ministry, as quoted by PTI, stated, "In total, Rs 30.52 crore amount lying unclaimed in more than seven lakh inoperative accounts of Employees’ Provident Fund Organisation (EPFO) will soon be refunded to the respective account holders or their legal heirs, PTI quoted officials in the labour ministry as saying."

For accounts linked with Aadhaar, the process of crediting funds has been optimised for speed and efficiency. Beneficiaries whose EPF accounts have been seeded with Aadhaar will receive the refunds directly into their bank accounts. As reported, "Those who have Aadhaar-seeded EPF accounts will immediately receive these funds in their bank accounts, says the report."

There are provisions for family members and nominees to claim funds in cases where the original account holders have passed away. According to the source, "the nominee or the legal heir will receive the funds in the event if the EPF account holder passes away." This ensures that even if a member dies while in service, their entitlements are accessible to their beneficiaries, provided claims are filed within the stipulated period.

An EPFO social media post reinforced the importance of timely action by family members, stating, "If a member passes away while in service, the EPF account becomes inoperative after 3 years from the date of death. Family members/legal heirs should file the claim in time to avoid the loss of interest." This notification comes amid ongoing efforts to ensure rightful disbursal of unclaimed funds.

The Ministry’s review has focused on accounts with balances up to Rs 1,000, a measure that is expected to expedite the clearance process. "In a major relief for lakhs of employees and their families, the Ministry of Labour and Employment has decided to clear over 7.11 lakh inactive EPFO accounts, each carrying a balance of up to Rs 1,000, following a recent review meeting, sources said, reports Press Trust of India (PTI)."

Digital advancements have supported these developments. In April 2025, the EPFO introduced Universal Account Number (UAN) generation and activation using Aadhaar Face Authentication Technology through the UMANG mobile app, a move that has enabled contactless and secure digital services for members and contributed to the efficiency of the current refund exercise.