EPF Rules 2025: In India, a portion of your salary is automatically deposited into your Employee Provident Fund (EPF) account every month. The government offers an attractive interest rate of 8.25%, making EPF one of the safest and most rewarding long-term investment options. Over time, this can build a strong retirement corpus. But many wonder: “If I quit my job at 40 or 45 and leave my PF untouched, will it still earn interest? Does interest stop once I’m unemployed?” Let’s break this down.
Interest Keeps Growing Until Age 58: According to EPFO rules, if you leave your job before turning 58 and don’t withdraw your PF balance, your account does not become inactive. Instead, your savings continue earning interest until you reach age 58. For example, if you stop working at 40 but leave your PF untouched, your balance will still grow with interest for another 18 years.
Interest After Retirement: If you retire at 58 and don’t withdraw your EPF immediately, your savings will keep earning interest for three more years — until you turn 61. After that, the account will become inactive, meaning interest stops accruing. But rest assured, your deposited money remains safe.
Think Before Withdrawing Early: Many people withdraw their PF balance soon after quitting their jobs, thinking the account will close automatically. But doing so means losing out on years of interest growth. Even if you are tempted to invest in a fixed deposit or other schemes, leaving the amount in your EPF is often wiser.
EPF: The Safest Retirement Option: The scheme, fully supported by the government, offers stable interest rates, and contributions receive tax benefits. This makes EPF one of the most reliable and secure options for retirement planning.
How To Withdraw Your EPF Balance
Here’s a step-by-step guide:
1. Log in to the EPFO website using your UAN (Universal Account Number).
2. Update your KYC details (such as Aadhaar, PAN, and bank account).
3. Select “Online Services.”
4. Click “Claim (Form-31, 19, 10C).”
5. Verify your bank account.
6. Select the reason for withdrawal (retirement, medical needs, home purchase, etc.).
7. Verify with OTP and submit your claim.
8. Your money should be credited to your bank account within 7–8 days.
Click here to add News18 as your preferred news source on Google. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.