The Central Board of Trustees of the Employees' Provident Fund Organisation (EPFO) has reversed the decision taken by the UPA II Government and has decided to allow accrual of interest on the inoperative accounts also.
This decision of the NDA Government will benefit as many as 9 crore inoperative acounts of subscribers who have switched jobs. An estimated Rs 30,000 crore is stuck in these inoperative accounts.
Terming this as a pro-employee decision, Union Minister of State for Labour and Employment Bandaru Dattatreya said the board has given an in-principle approval to the restructuring of the organisation as as recommended by the sub-committee set up for the purpose.
Inoperative EPF accounts are those where there has been no contribution from either the employee or the employer for 36 months.