Inoperative EPF Accounts Soar 84%: Why More Retirement Money Is Being Left Unclaimed

The balance lying in inoperative EPF accounts increased by nearly 116% over the four years, rising from Rs 3,930.85 crore in FY 2020-21 to Rs 8,505.23 crore in FY 2023-24.

For employees working in an establishment covered under the EPF & MP Act, 1952, the amount can be transferred to the new account through online or offline modes.

Source : ABP Live

Inoperative Employees’ Provident Fund (EPF) accounts increased by nearly 84% between Financial Year (FY) 2020-21 and FY 2023-24, while the amount lying in these accounts more than doubled, according to data shared by Shobha Karandlaje, Minister of State for Labour and Employment, in the Rajya Sabha on Thursday (August 13, 2026).

The data showed that the number of inoperative EPF accounts rose from 11,72,923 in FY 2020-21 to 21,55,387 in FY 2023-24. Over the same period, the balance in these accounts increased from Rs 3,930.85 crore to Rs 8,505.23 crore.

Karandlaje was responding to a query by Neeraj Dangi, Member of Parliament (MP), who sought year-wise and state/Union Territory-wise details of inoperative EPF accounts and the amount lying in them from FY 2020-21 onwards. He also sought details of claims settled against such accounts and asked whether the government had assessed the reasons behind the rise in inoperative accounts.

EPF Accounts, Balance And Settled Amount: Year-Wise Data

The Labour Ministry provided the following figures for FY 2020-21 to FY 2023-24:

• FY 2020-21: 11,72,923 inoperative accounts, with a balance of Rs 3,930.85 crore and Rs 1,855.55 crore settled.
• FY 2021-22: 13,41,848 inoperative accounts, with a balance of Rs 4,962.70 crore and Rs 2,269.75 crore settled.
• FY 2022-23: 17,44,518 inoperative accounts, with a balance of Rs 6,804.88 crore and Rs 2,673.98 crore settled.
• FY 2023-24: 21,55,387 inoperative accounts, with a balance of Rs 8,505.23 crore and Rs 2,632.29 crore settled.

(Source: Ministry of Labour & Employment in Rajya Sabha)

Unsettled EPF Balance Surges 116%

The balance lying in inoperative EPF accounts increased by nearly 116% over the four years, rising from Rs 3,930.85 crore in FY 2020-21 to Rs 8,505.23 crore in FY 2023-24.

In comparison, the amount settled during the period increased by around 42%, from Rs 1,855.55 crore to Rs 2,632.29 crore.

The settled amount also declined slightly between FY 2022-23 and FY 2023-24. It fell from Rs 2,673.98 crore to Rs 2,632.29 crore, a decline of 1.56%.

Share Of Settled Amount Falls

The proportion of the balance that was settled also declined over the four-year period.

In FY 2020-21, Rs 1,855.55 crore was settled against a balance of Rs 3,930.85 crore, accounting for around 47% of the total. By FY 2023-24, the settled amount stood at Rs 2,632.29 crore against a balance of Rs 8,505.23 crore, bringing the proportion down to around 31%.

Average Balance Per Inoperative Account Rises

The average amount lying in an inoperative EPF account also increased during the period.

It rose from Rs 33,513 in FY 2020-21 to Rs 39,460 in FY 2023-24, an increase of around 18% over four years.

Why Are Inoperative EPF Accounts Increasing?

Responding to Dangi's query, Karandlaje said the primary reason for the rise in inoperative EPF accounts was the non-filing of claims by members after exiting service.

“Additionally, due to the KYC updation (Aadhaar seeding) drive for all its members, accounts so far not classified because of the absence of members' date of birth, have now been categorised as inoperative,” the minister said.

Government Measures To Identify Inoperative Accounts

Karandlaje said the government has taken measures to identify and categorise inoperative EPF accounts with unclaimed accumulations based on the availability and status of KYC details.

A provision for auto-initiation of EPF claims has also been incorporated into the revised EPF Scheme, 2026. The provision is aimed at facilitating direct credit of accumulations to Aadhaar-seeded bank accounts.

The Employees' Provident Fund Organisation (EPFO) has also undertaken outreach and awareness initiatives through social media platforms and Nidhi Aapke Nikat (NAN) 2.0 camps. These initiatives are aimed at informing employers and employees about EPF services and inoperative accounts.

How Can You Activate An Inoperative EPF Account?

For employees working in an establishment covered under the EPF & MP Act, 1952, the amount can be transferred to the new account through online or offline modes.

Those who have retired can withdraw the amount, as per EPFO instructions.