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Here’s For How Long Your EPF Account Will Earn Interest After Leaving Job

Many might wonder what would happen if they leave their job after accumulating a good chunk of money in their PF account? Would it still continue to earn a tax-free interest?

To mention is the fact that a person’s EPF account will continue to earn interest even after your employment till you turn 58 years old and even if there is no fresh contribution. However, to note is the fact that though the accumulated balance up to the date of retirement (58 years) or end of employment is not taxed, any interest earned on the PF account post resigning, retirement, or end of employment is taxable.

Post resignation from your job before the age of 58, an individual’s PF account will become inoperative if they don’t apply for withdrawal within 36 months. Once your EPF account becomes inoperative, then it does not earn further interest.

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As per EPFO rules, an EPF account becomes inoperative in four situations:
  • if an employee retires from service after 55 years
  • in case the subscriber shifts abroad permanently
  • if the subscriber dies 
  • lastly, if the subscriber does not apply for EPF withdrawal within 36 months of quitting his job then the account will become inoperative. 

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Also, the PF amount in one’s account is taxable if withdrawal is made within 5 years since the day perosn has joined the employment. In cases where the employee works with more than one organizations in the initial five years of EPF subscription, then the service will be considered as continuous if the EPF balance of the previous organizations are transferred to the current organization. In this situation, it is considered that the employee has rendered continuous service for a period of five years or more for taxation purposes.


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