Many private sector employees worry that their Provident Fund (PF) stops growing once they leave a job.
This fear is common, but the Employees’ Provident Fund Organisation (EPFO) has made it clear that this is not true.
Even if you leave your job, the money already deposited in your PF account continues to earn interest, as long as certain conditions are met.
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Does PF Earn Interest After Leaving a Job?
Your PF account does not close automatically when you resign or lose your job.
If you leave the money in your PF account and are below 58 years of age, interest will keep getting added every year.
EPFO has clarified that PF accounts do not stop earning interest just because you are unemployed or have switched jobs.
As long as the amount stays in the account and you haven’t reached retirement age, your PF continues to grow.
What Happens to PF Interest After Age 58?
Interest on PF stops once you turn 58.
EPFO considers this the retirement age and expects members to withdraw their funds.
If you do not withdraw your PF after 58 and leave the money in the account, it will remain safe but will not earn any additional interest.
New PF Withdrawal Rules After Leaving a Job
EPFO has updated the rules for PF withdrawal.
If you lose your job or resign, you can now withdraw 75% of your PF balance immediately.
To withdraw the remaining 25%, you must remain unemployed for 12 months.
Earlier, the full amount could be withdrawn after two months, but this waiting period has now been extended.
The withdrawal period under the Employee Pension Scheme (EPS) has also been increased to 36 months, giving more time to claim pension-related benefits.
When Does a PF Account Become Inactive?
If you leave your job and no contributions are made for 36 months, your PF account is marked as inactive.
Once inactive, the account stops earning interest, and tracking it can become difficult.
To avoid this, you should transfer your PF to your new employer as soon as you join a new job or plan a proper withdrawal.
Key Takeaway for PF Account Holders
Your PF savings do not stop growing just because you leave a job.
Interest continues until you reach 58 years of age, making PF a reliable long-term savings tool.
However, keeping track of your account is important.
Transfer your PF when changing jobs, understand the new withdrawal rules, and check your balance regularly through the EPFO website or UAN portal to ensure your retirement savings stay on track.