India’s inoperative Employees’ Provident Fund accounts have increased by 84% over three years, with a growing pool of unclaimed retirement savings, prompting government measures to improve claim processes.
Inoperative Employees’ Provident Fund accounts in India have risen sharply in recent years, with fresh government data showing a near 84% jump between financial years 2020-21 and 2023-24, alongside a much larger pool of money sitting unclaimed. The figures were set out in the Rajya Sabha by Shobha Karandlaje, the Minister of State for Labour and Employment, in response to a question from Neeraj Dangi.
According to the ministry’s reply, the number of inoperative EPF accounts climbed from 11,72,923 in 2020-21 to 21,55,387 in 2023-24. Over the same period, the amount held in those accounts more than doubled, from Rs 3,930.85 crore to Rs 8,505.23 crore. The settled amount also increased, but far less quickly, rising from Rs 1,855.55 crore to Rs 2,632.29 crore.
That means the stock of money left in dormant accounts has grown much faster than the sums being cleared. The balance in inoperative accounts rose by about 116% over four years, while the share being settled fell from roughly 47% of the balance in 2020-21 to about 31% in 2023-24. The average amount sitting in each inoperative account also increased, from Rs 33,513 to Rs 39,460.
The ministry said the main reason for the increase was that members did not file claims after leaving employment. It also said some accounts that had not previously been classified as inoperative were later brought into that category during a know-your-customer update drive, including accounts where dates of birth had not been recorded and Aadhaar seeding was incomplete.
The government said it has introduced steps to identify unclaimed accumulations more systematically, including an auto-initiation provision for EPF claims in the revised EPF Scheme, 2026, designed to enable direct credit into Aadhaar-seeded bank accounts. The Employees’ Provident Fund Organisation has also stepped up outreach through social media and Nidhi Aapke Nikat camps, while workers can transfer balances online or offline when they change jobs and retirees can withdraw money in line with EPFO rules.
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