Replying to a query in Rajya Sabha on Thursday (August 13, 2026), Shobha Karandlaje, Minister of State for Labour and Employment, shared some interesting data about inoperative Employees’ Provident Fund (EPF) accounts from Financial Years 2020-21 to 2023-24. The figures showed a 84% jump in inoperative accounts, along with growing unsettled balance and a drop in settled amounts over the four years. Additionally, it was noted that the average amount per inoperative account has increased by 18% in four years, from Rs 33,513 in FY 20-21 to Rs 39,460 in FY 23-24. Let’s take a closer look at the data Karandlaje shared in the Parliament.
Inoperative EPF accounts increase
On Thursday, Neeraj Dangi, Member of Parliament (MP), asked Karandlaje about the number of inoperative EPF accounts and the amount lying therein, year-wise and state/Union Territory-wise, from Financial Year 2020-21 till date.
Dangi also sought the details of EPF claims settled for such accounts, and asked whether the government has assessed the reasons for the jump in the number of inoperative EPF accounts.
Also Read: When will government issue plastic currency notes? Minister reveals this in Parliament
Karandlaje presented the data of inoperative EPF accounts year-wise from the Financial Year 2020-21 to 2023-24.
| Financial Year | Number of inoperative accounts | Balance (₹ crore) | Settled amount (₹ crore) |
| 2020-21 | 11,72,923 | 3,930.85 | 1,855.55 |
| 2021-22 | 13,41,848 | 4,962.70 | 2,269.75 |
| 2022-23 | 17,44,518 | 6,804.88 | 2,673.98 |
| 2023-24 | 21,55,387 | 8,505.23 | 2,632.29 |
Insights from inoperative EPF account data
Nearly 84% increase in inoperative EPF accounts in 4 years
The Labour Ministry data revealed that in the four years from 2020-21 to 2023-24, the number of inoperative EPF accounts increased by nearly 84%, from 11,72,923 to 21,55,387.
116% increase in unsettled balance, 42% jump in settled balance
According to the data, there was an almost 116% surge in the balance in these unsettled inoperative EPF accounts, from Rs 3,931 crore in FY 20-32 to Rs 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 Rs 1,856 crore in FY 20-21 to Rs 2,632 crore in FY 23-24.
Dec line in percentage of settled inoperative EPF account amount
In the four financial years mentioned in the data, the percentage of settled amount has fallen by nearly 16%. In FY 20-21, Rs 18,56 crore was settled against Rs 3,931 crore balance, 47% in total. In FY 23-24, it declined to 31%, Rs 2,632 crore settled amount against Rs 8,505 crore balance.
What is also striking is that in FY 22-23, the settled amount was nearly Rs 2,674 crore, which fell to a little over Rs 2,632 crore in FY 23-24, a 1.56% slip.
Average amount per inoperative amount increased by 16% in 4 years
The average balance per inoperative EPF account increased by 16% in four financial years. In FY 20-21, it was Rs 33,513, which increased to Rs 39,460 in FY 23-24.
Why did inoperative EPF accounts increase in four years?
Replying to Dangi’s query, Karandlaje said the primary reason for the rise in the number of inoperative EPS accounts is the non filing of claims by members after exiting service.
“Additionally, due to the KYC updation (Aadhaar seeding) drive for all its members, accounts so far not classified because of the absence of members' date of birth, have now been categorised as inoperative,” says the minister.
What measures has the government taken to identify inoperative EPF accounts?
Replying to the question, Karandlaje revealed that the government has taken measures to identify and categorise inoperative EPF accounts with unclaimed accumulations based on the availability and status of KYC details.
A provision for auto-initiation of EPF claims has been incorporated in the revised EPF Scheme, 2026, to facilitate direct credit of accumulations to Aadhaar-seeded bank accounts, reveals Karandlaje.
The Minister further says that the EPFO has also undertaken outreach and awareness initiatives through social media platforms and the organisation of Nidhi Aapke Nikat (NAN) 2.0 camps to disseminate information among employers and employees about EPF services and inoperative accounts.
What should you do to activate an inoperative EPF account?
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.
