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    Job change and no EPF transfer? You might be losing 8.25% interest earnings

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    Many salaried employees in India rely on the Employees’ Provident Fund (EPF) for long-term savings and retirement planning. It not only offers tax benefits but also pays a decent interest rate, which is currently 8.25% for the financial year 2024–25.

    But if you’ve changed jobs recently and haven’t transferred your old EPF account to your new employer, you might be wondering: will your money still earn interest? Or are you losing out? Let’s find out in this article.

    WHAT HAPPENS IF YOU DON’T TRANSFER YOUR EPF ACCOUNT?

    When you switch jobs, your Universal Account Number (UAN) stays the same, but your EPF account with your old employer doesn’t automatically move to the new one. You have to transfer it yourself through the EPFO Member Sewa portal.

    Till then, your old money just sits there. And yes, for a while, it still earns interest.

    BUT FOR HOW LONG DOES INTEREST CONTINUE?

    According to EPFO rules, interest is paid on an old or unused (dormant) EPF account for up to 36 months (3 years) after the last contribution. If there are no contributions for 36 months and the employee has retired or left their job, the EPF account becomes inactive and stops earning interest.

    For instance, if you left your previous job in 2020 and didn’t transfer your EPF, that money stopped growing in 2023. You’re missing out on interest that could’ve built up through compounding.

    WHY IS THIS A PROBLEM?

    Let’s say your old EPF account. For three years, it earned no interest. Meanwhile, your new employer is adding money to a new account with a smaller balance. So, the interest you’re earning is also lower.

    On top of that, withdrawals from the old account can be tricky, especially if your bank details, Aadhaar, or PAN aren’t updated. The paperwork can become a headache.

    HOW TO AVOID THIS ISSUE

    To keep your retirement money growing and avoid any problems later transfer your EPF account soon after joining a new job. Check that your Aadhaar, PAN, and bank details are correct.

    It is advisable not to withdraw your EPF unless you really need to. Let it grow with interest.

    Published By:

    Jasmine anand

    Published On:

    May 5, 2025



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