As per the Ministry’s written response to queries in parliament, the total amount in the inoperative EPF account had spiraled over five-fold to ₹8,505.23 crore in FY24, from ₹1,638.37 crore in FY19
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KAMAL NARANG
The Ministry of Labour and Employment has decided to auto credit ₹30.52 crore lying in 7.11 lakh inoperative Employees’ Provident Fund Organisation (EPFO) accounts, holding ₹1,000 or less, to subscribers.
The refund will not require any documentation, except bank verification to confirm that the beneficiary’s or nominee’s account is Aadhaar-seeded and functional, said top Ministry sources. An EPF account is declared inoperative if it does not see any contribution for 36 months at a stretch.
On Monday, Minister for Labour and Employment Mansukh Mandaviya gave nod for a pilot project to auto credit EPF money in 7.11 lakh out of total 31.86 lakh inoperative accounts, each of which has a balance of ₹1,000 or less, said sources.
In total, ₹10,903 crore is lying idle in 31.86 lakh inoperative accounts, opened over the last two decades. If the Ministry’s pilot project is successful, the initiative will expanded to the remaining 24.76 lakh subscribers, who have larger amounts held in their accounts, added sources.
EPF can be withdrawn after retirement at the age of 58, or after permanent disability, or post two months of unemployment. Partial withdrawals, however, are permitted for specific needs like medical emergencies, marriage, education, or home construction/loan repayment.
As per the Ministry’s written response to queries in parliament, the total amount in the inoperative EPF account had spiraled over five-fold to ₹8,505.23 crore in FY24, from ₹1,638.37 crore in FY19. The number of accounts that had zero as closing balance for FY24 was 1,32,40,542.
For unorganised sector
In another initiative, the Ministry has undertaken a significant pro-labour reform to strengthen educational support for the children of eligible unorganised workers.
The Ministry has suitably amended the relevant provision of Labour Welfare Scheme (Education Component), which deals with ‘Financial Assistance for Education to the Wards of Beedi/Cine/Iron, Manganese and Chrome ore (IOMC)/Limestone and Dolomite ore (LSD)/Mica mines workers – Pre & Post-Matric’.
This allows a student from the unorganised sector, availing the Ministry’s welfare-based scholarship, to receive a merit-based scholarship from any central or State government agency, wherever eligible.
This reform marks a departure from the earlier provision and ensures that deserving students from unorganised worker families are not denied educational opportunities due to overlapping eligibility conditions, said Ministry sources.
The measure is expected to directly benefit the wards of such unorganised workers by improving access to higher education and reducing dropout rates.
Published on February 23, 2026
