Rs 4,962 Cr Lying Inactive In EPF Accounts: Minister Rameshwar Teli

The total sum under inactive accounts under the Employees' Provident Fund (EPF) Scheme, 1952 is Rs 4,962.7 crore, according to Rameshwar Teli, Minister of State for Labour.

“In accordance with paragraph 72(6) of the EPF Scheme 1952, certain accounts are designated as Inoperative Accounts. However, all such Inoperative Accounts have specific claims. As of 31 March 2022, the total amount in Inoperative Accounts is Rs 4962.70 crore,” the minister said in response to a question about the high number of EPF accounts of employees that have been inactive for several years. 

Under the scheme, an account is classified as inoperative if there has been no contribution from either the employee or the employer for 36 months, or the member has not withdrawn money within three years of leaving the company, or the amount remitted to a person has not been delivered or reclaimed. On these inactive accounts, however, income is still paid. 

According to the Employees' Provident Funds and Miscellaneous Provisions (EPF and MP) Act of 1952, an employee of any covered establishment drawing monthly wages of up to Rs 15,000 is statutorily required to join the fund and contribute 12 per cent of the wages, including basic pay, dearness, and retaining allowance, if any. The employer is also required to contribute 12 per cent of the wages.