Labour Ministry changes norms for scholarship to children of unorganised workers

Labour Ministry changes norms for scholarship to children of unorganised workers

**Ministry of Labour and Employment Streamlines Scholarship Program for Unorganised Sector Dependents**

**New Delhi** – In a significant move aimed at enhancing social security benefits for a vulnerable segment of the workforce, the Ministry of Labour and Employment has announced revised norms for its scholarship program, specifically designed for the children of unorganised sector workers. This initiative underscores the government’s commitment to supporting the educational aspirations of families whose livelihoods are often precarious.

The updated guidelines, which come into effect immediately, are expected to simplify the application process and broaden the eligibility criteria, ensuring that a greater number of deserving students can benefit from financial assistance for their academic pursuits. The unorganised sector, comprising a vast majority of India’s workforce, often faces challenges related to income instability and limited access to formal social security nets. This scholarship program is a crucial intervention to bridge that gap, empowering the next generation with educational opportunities.

A key reform under the new framework involves a more streamlined verification process for applications. This aims to reduce administrative delays and ensure timely disbursement of funds, allowing students to focus on their studies without undue financial stress. Furthermore, the Ministry has indicated a review of the scholarship amounts to better reflect the rising costs of education, ensuring the assistance provided is meaningful and impactful.

In parallel to these educational reforms, the Ministry has also taken a decisive step towards improving financial inclusivity for workers by initiating the settlement of a substantial number of inoperative accounts held by the Employees Provident Fund Organisation (EPFO). Approximately 7.11 lakh such dormant accounts are slated for resolution. This measure is part of a broader effort to unlock dormant funds and provide beneficiaries with access to their accumulated savings, thereby strengthening their financial security.

The settlement of these inoperative accounts is a complex undertaking, involving reconciliation of records and proactive engagement with account holders or their legal heirs. The Ministry’s proactive approach in addressing this backlog signifies a commitment to ensuring that every worker’s hard-earned savings are accessible and utilized effectively. This initiative not only benefits individual workers but also contributes to a more efficient and transparent financial ecosystem.

These dual policy interventions – the scholarship program enhancement and the EPFO account settlement – highlight a multi-pronged strategy by the Ministry of Labour and Employment to bolster the socio-economic well-being of the unorganised workforce. By addressing both immediate educational needs and long-term financial security, the government aims to foster a more equitable and supportive environment for millions of Indian workers and their families. The reforms are anticipated to have a tangible positive impact, enabling greater social mobility and economic empowerment across the nation. The Ministry has pledged ongoing review and adaptation of these policies to ensure their continued relevance and effectiveness in meeting the evolving needs of the unorganised sector.

This article was created based on information from various sources and rewritten for clarity and originality.