Labour Ministry changes norms for scholarship to children of unorganised workers

The Union Labour Ministry on Monday (February 23, 2026) revised the student scholarship guidelines by allowing a student who is availing the Ministry’s welfare-based scholarship to also receive a merit-based scholarship from any Union or State government agency. The move is expected to benefit more students beyond one lakh beneficiaries each year at present.

“With this amendment, the wards of beedi, cine and non-coal mine workers will now be able to pursue higher education with enhanced financial support, including access to better merit-based scholarships, thereby enabling them to realise their academic aspirations and improve their long-term well-being and future livelihood prospects,” a government release said.

The Ministry said the decision is in “furtherance of the objectives of the Code on Social Security” to support the children of eligible unorganised workers in their education. The scheme is need-based in nature and does not prescribe any merit criteria.

“In order to enhance equity, remove unintended exclusions and ensure policy clarity, the Ministry will suitably amend the relevant provision of the scheme guidelines,” the release added. Earlier, deserving students from unorganised worker families were denied scholarships due to overlapping eligibility conditions.

EPFO’s inactive accounts

In another reform measure, the Ministry decided to settle 7.11 lakh inoperative accounts of the Employees’ Provident Fund Organisation (EPFO). Each of these accounts has a balance of up to ₹1,000. About ₹30.52 crore is available in these inoperative accounts. The Ministry said it will soon be returned to the account holders or their legal heirs.