Home / Opinion / Online-views /  DYK: Amont in inoperative EPF accounts may also get interest

Have you transferred money from your Employees’ Provident Fund (EPF) account in the previous organization? If not, now may be the time to do so since the EPF Organization (EPFO) has decided to incentivize you if you transfer your old account to your current one by crediting interest on the inoperative money retrospectively.

The current move follows EPFO’s decision last year to stop paying interest on accounts that remain inoperative for more than three years. So if you have an old inoperative EPF account with your previous employer, transfer it now to earn interest on the money sitting in the account.

How to transfer

Go to and download Form 13. You can also ask your company’s human resources (HR) department for help. In Form 13, which is an account transfer form, you will need to fill in the details of your previous organization such as your previous EPF number, organization and regional provident fund (PF) office and give it to your current human resource department which will then fill in the details of the current organization along with your new PF number and submit it to the regional PF office with which they hold their account.

In the back-end, the regional PF office will get in touch with your previous regional PF office and have your account transferred.

What you will get

Ideally, the process takes about 30 days but depending upon the backlog it may take longer. EPF will transfer the outstanding balance to the new account along with interest retrospectively. So if your account has been inoperative for the last four years and you get it transferred, you will get the interest applicable for the last one year. The previous three-year EPFO would have continued to pay interest. But if you chose to withdraw your EPF money, then for the last one year, your money will not earn any interest.

Should you transfer?

You should get your EPF account transferred for two reasons: interest rate and tax incentives. For the last several years, EPF has given a tax-free rate of 8.5% per annum. In FY11, due to a change in the accounting system, EPFO discovered a surplus kitty due to which they gave a rate of interest of 9.5%. For FY12, the rate is 8.25%. With a tax-free rate of return, which promises to give you a real rate of return or above-inflation return, it’s in your interest to get your account transferred.

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