Employees Provident Fund
If you have retired and have not yet withdrawn your Employees Provident Fund (EPF) money, then there is relief news for you. Even after retirement, you continue to get interest on the amount deposited in your EPF account. However, this facility is not permanent. The period of getting interest under EPF Scheme, 2026 depends on the age at which you left the job or took retirement. That means, different rules apply for employees retiring before 55 years and after 55 years.
If you retire before 55 years, for how long will you get interest?
According to the new rules of EPFO, if an employee leaves the job or retires before the age of 55 years, then interest will continue to be received on the amount deposited in his EPF account till he completes the age of 58 years. For this, it is important that the employee keeps his PF balance in EPFO and does not withdraw it in between.
For example, if an employee takes retirement at the age of 52 and does not withdraw his PF, then he will continue to get interest as per the interest rate declared by EPFO till the age of 58 years.
What are the rules on retirement at or after 55 years?
If an employee retires at the age of 55 years or more, then the amount deposited in his PF account will continue to earn interest for the next 36 months (3 years) from the date of retirement. After this the account will be considered inoperative and interest on it will stop.
Suppose an employee retires at the age of 60 and does not withdraw his PF, then he will continue to get interest for the next three years i.e. till the age of 63 years. After this he can apply for final settlement.
Do not get confused about EPF and EPS
Often employees consider EPF (Employees’ Provident Fund) and EPS (Employees’ Pension Scheme) as the same scheme, whereas both are different. Both are operated by EPFO, but their rules are different.
Under EPS, if an employee has completed at least 10 years of eligible service, he can choose to take early pension before the age of 50 years. At the same time, on completing the age of 58 years, he becomes entitled to get the full monthly pension. If the employee postpones his pension till the age of 60 years, he gets the benefit of higher pension.
Is it necessary to withdraw PF after retirement?
According to EPFO rules, it is not mandatory to withdraw PF after retirement. If the employee wishes, he can leave his money with EPFO only. Unless the account is deactivated under the EPF Scheme, 2026, interest will continue to be earned on it.
If you do not need the money immediately after retirement, then leaving the PF amount in the account for some time can benefit from additional interest. However, once the account becomes inactive, interest on it stops. Therefore, employees should decide on PF withdrawal keeping in mind their retirement age and financial needs.
