The Employees’ Provident Fund Organisation (EPFO) has made an important decision that will benefit around 700,000 individuals with dormant Provident Fund accounts. The EPFO announced that it will soon be returning a total sum of ₹30.52 crore to account holders whose accounts have been inactive for a period of three years and contain a balance of ₹1,000 or less. This update marks a significant relief for many employees who had left small amounts in their PF accounts after exiting jobs without making claims.

Under the revised rules put forth by the EPFO, accounts that meet the criteria of inactivity for 36 months will now be considered dormant. Consequently, the funds that have been languishing in these accounts will be transferred directly into the respective bank accounts of the individuals. This initiative is particularly important for those who may have left their jobs after a short period and neglected to claim their Provident Fund benefits. It aims to ensure that the funds are put back into the hands of the earners, embracing a more direct and immediate support framework.

This change not only simplifies the process for account holders by sidestepping cumbersome claim processes but also underscores a broader push by the Indian government to modernize financial compensation systems and enhance the financial inclusion of workers. By directly depositing these funds into bank accounts, the EPFO is taking a proactive stance in addressing the long-standing issue of unclaimed and overlooked provident funds, thereby facilitating better financial recovery for the affected individuals.