Inoperative Employees' Provident Fund (EPF) accounts increased by nearly 84% between Financial Year (FY) 2020-21 and FY 2023-24, according to data shared by Shobha Karandlaje, Minister of State for Labour and Employment, in the Rajya Sabha on Thursday (August 13, 2026). The number of inoperative EPF accounts rose from 11,72,923 in FY 2020-21 to 21,55,387 in FY 2023-24. Over the same period, the balance in these accounts increased from ₹3,930.85 crore to ₹8,505.23 crore, representing a 116% increase in the amount lying unclaimed. As per the latest data, there was an almost 116% surge in the balance in these unsettled inoperative EPF accounts, from ₹3,931 crore in FY 20-32 to ₹8,505 crore in FY 23-24. What is striking is that during the same period, the balance in settled accounts rose by just 42%, from ₹1,856 crore in FY 20-21 to ₹2,632 crore in FY 23-24.
The Labour Ministry provided comprehensive data showing the systematic increase in inoperative EPF accounts from FY 2020-21 to FY 2023-24. In FY 2020-21, there were 11,72,923 inoperative accounts with a balance of ₹3,930.85 crore and ₹1,855.55 crore settled. By FY 2021-22, this increased to 13,41,848 accounts with a balance of ₹4,962.70 crore and ₹2,269.75 crore settled. The trend continued with 17,44,518 accounts in FY 2022-23 having a balance of ₹6,804.88 crore and ₹2,673.98 crore settled. In FY 2023-24, the total reached 21,55,387 accounts with a balance of ₹8,505.23 crore and ₹2,632.29 crore settled. What is also striking is that in FY 22-23, the settled amount was nearly ₹2,674 crore, which fell to a little over ₹2,632 crore in FY 23-24, a 1.56% slip.
The proportion of settled amounts against inoperative EPF accounts decreased substantially over the four-year period. In FY 2020-21, ₹1,855.55 crore was settled against a balance of ₹3,930.85 crore, accounting for around 47% of the total. By FY 2023-24, the settled amount stood at ₹2,632.29 crore against a balance of ₹8,505.23 crore, bringing the proportion down to around 31%. The settled amount also declined slightly between FY 2022-23 and FY 2023-24, falling from ₹2,673.98 crore to ₹2,632.29 crore, a decline of 1.56%. In the four financial years mentioned in the data, the percentage of settled amount has fallen by nearly 16%. In FY 20-21, ₹18,56 crore was settled against ₹3,931 crore balance, 47% in total. In FY 23-24, it declined to 31%, ₹2,632 crore settled amount against ₹8,505 crore balance.
The average amount lying in an inoperative EPF account also increased during the period, with the average balance per account rising from ₹33,513 in FY 2020-21 to ₹39,460 in FY 2023-24, an increase of around 18% over four years. This indicates that while the number of accounts has grown significantly, the average unclaimed amount per account has also increased substantially, suggesting larger accumulations remaining unclaimed. The average balance per inoperative EPF account increased by 16% in four financial years. In FY 20-21, it was ₹33,513, which increased to ₹39,460 in FY 23-24.
Responding to queries by MP Neeraj Dangi, Karandlaje attributed the primary reason for the rise in inoperative EPF accounts to non-filing of claims by members after exiting service. The minister also noted that due to the KYC updation (Aadhaar seeding) drive for all members, accounts that were previously not classified due to absence of members' date of birth have now been categorised as inoperative. The government has implemented measures including a provision for auto-initiation of EPF claims in the revised EPF Scheme 2026, aimed at facilitating direct credit to Aadhaar-seeded bank accounts. The Employees' Provident Fund Organisation (EPFO) has also undertaken outreach initiatives through social media platforms and Nidhi Aapke Nikat (NAN) 2.0 camps to inform employers and employees about EPF services and inoperative accounts. If you are working in an establishment covered under the EPF & MP Act, 1952, you should get the amount transferred into your new account either by online or offline mode. If you have retired, you may withdraw the amount, as per the EPFO instructions.
