In a significant update for EPFO members, the Employee Provident Fund Organisation (EPFO) has clarified that interest will continue to accrue on members’ EPF accounts for up to 36 months after they leave their jobs — even if no new contributions are being made.
This announcement comes as many employees, particularly in Bihar, prepare to transition into the National Pension System (NPS), following the Bihar government’s decision to bring teachers under NPS by granting them state employee status.
Interest Will Be Paid at 8.25% Even After 36 Months
Speaking on the matter, EPFO Bihar-Jharkhand Zone Commissioner Rajeshwar Rajesh confirmed that members’ balances will continue to earn compound interest at an attractive rate of 8.25% per annum — even after the cessation of monthly contributions.
This interest rate remains higher than most other investment schemes, providing a safe and profitable option for members who choose to leave their funds in the EPF account.
Caution Against Premature Withdrawals
Commissioner Rajesh also urged EPFO members, especially those transitioning to NPS, to avoid withdrawing their EPF balance in haste. Many teachers are currently requesting partial or full withdrawals from their EPF accounts — but doing so could lead to unintended financial consequences.
Full withdrawal may result in loss of pension benefits.
As long as members do not withdraw the pension portion of their EPF, they will remain eligible for pension under existing EPF rules.
In case of a member’s untimely death, dependents will also receive pension benefits — provided the account remains active and funds are not withdrawn entirely.
Safety of EPF Funds
The EPFO has reassured all members that funds remain completely safe in the account, and members should not fall for false rumours regarding fund security.
The organization encourages members to:
✅ Retain funds in their EPF account to continue earning 8.25% interest for up to 36 months after employment ends.
✅ Preserve their pension eligibility by not withdrawing the full balance unnecessarily.
✅ Make informed decisions about withdrawals, keeping in mind long-term pension benefits.
Final Takeaway
For thousands of EPFO beneficiaries, this update offers much-needed clarity and financial reassurance. Members can safely leave their EPF balances untouched — continuing to grow — while protecting their future pension entitlements.
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- My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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