21.55L inoperative EPF accounts: How to claim money

In a recent reply to a query in Rajya Sabha, Shobha Karandlaje, Minister of State for Labour and Employment, shared data on increasing inoperative Employees' Provident Fund (EPF) accounts. From Financial Years 2020-21 to 2023-24, the number of inoperative accounts jumped by nearly 84%, from 11,72,923 to 21,55,387. This surge was accompanied by a 116% increase in unsettled balances, rising from Rs 3,931 crore to Rs 8,505 crore.

Conversely, the settled balance saw a modest 42% increase, from Rs 1,856 crore to Rs 2,632 crore. Karandlaje highlighted that the percentage of settled amounts in inoperative EPF accounts declined by nearly 16%, falling from 47% in FY 20-21 to 31% in FY 23-24.The average balance per inoperative account also rose by 16%, from Rs 33,513 in FY 20-21 to Rs 39,460 in FY 23-24.

The Minister attributed the rise in inoperative EPF accounts to non-filing of claims by employees after leaving service. She further revealed that the government has implemented steps to identify and categorize inoperative accounts, including the incorporation of an auto-initiation of EPF claims in the revised EPF Scheme 2026. Additionally, outreach initiatives through social media and Nidhi Aapke Nikat (NAN) 2.0 camps have been organized to educate employers and employees about EPF services and inoperative accounts.