EPFO to Automatically Settle PF Accounts with Balance Up to ₹1,000

The Employees' Provident Fund Organisation ( EPFO ) is rolling out a big relief for members with small, forgotten balances. The Central Board of Trustees has cleared a pilot project to automatically settle inoperative accounts that have ₹1,000 or less lying unclaimed.

Small Balances, Automatic Credit

In the first phase, over 1.33 lakh inactive EPFO accounts will be covered, with a total balance of nearly ₹5.68 crore. Instead of filing fresh claims or running after paperwork, members will get the money directly in their Aadhaar-linked bank accounts.

The idea is simple: clear long-pending small amounts quickly and reduce unnecessary applications. If the pilot works smoothly, EPFO may extend this auto-settlement system to accounts with higher balances as well.

Faster Service, Less Hassle

• With this move, EPFO aims to:
• Speed up disbursal of long-overdue funds
• Cut down procedural delays
• Improve overall service efficiency

For lakhs of members, this could mean getting their small savings back without lifting a finger.

Interest Rate Stays at 8.25%

In another key decision, EPFO has retained the EPF interest rate at 8.25% for FY 2025-26. The decision was taken on March 2, 2026.

This is the second consecutive year the rate has remained unchanged. In FY 2024-25 too, the rate was kept at 8.25%.

Here’s how the rate has moved in recent years:

• 2025-26: 8.25%
• 2024-25: 8.25%
• 2023-24: 8.25% (up from 8.15%)
• 2022-23: 8.15%
• 2021-22: 8.10% (lowest in nearly 40 years)
• 2020-21: 8.50%

Notably, the 8.10% rate announced in March 2022 was the lowest since 1977-78, when the rate stood at 8%.

What It Means for Members

While the interest rate remains stable, the new auto-settlement plan could significantly improve member experience. Small, inactive balances that were once stuck in paperwork may now flow directly into bank accounts.

For EPFO’s millions of subscribers, that’s a practical reform, less waiting, fewer forms, and faster access to their own money.