Labour Ministry Eases Scholarship Rules; EPFO to Refund ₹30.52 Crore from Dormant Accounts
In a significant policy shift, the Union Labour Ministry on Monday (February 23, 2026) updated its scholarship guidelines to allow students receiving welfare-based financial assistance from the Ministry to simultaneously avail merit-based scholarships offered by any Central or State government body. The revision is expected to widen access to financial aid, benefiting more than the current one lakh students annually. According to an official statement, the amendment will particularly support the children of beedi workers, cine workers, and non-coal mine workers. By removing restrictions on overlapping scholarships, eligible students will now have greater financial flexibility to pursue higher education and compete for merit-based awards without losing need-based support. The Ministry clarified that its scholarship scheme remains need-driven and does not impose academic merit criteria. The change has been introduced to promote equity, eliminate unintended exclusions, and ensure clearer policy implementation. Previously, several deserving students from unorganised worker families were unable to access additional scholarships due to conflicting eligibility rules. The decision aligns with the broader objectives of the Code on Social Security, which seeks to strengthen welfare measures for unorganised workers and their families, particularly in the area of education. In a separate reform initiative, the Ministry also announced the settlement of 7.11 lakh inactive accounts under the Employees’ Provident Fund Organisation (EPFO). Each of these inoperative accounts holds a balance of up to ₹1,000, amounting to a total of ₹30.52 crore. The funds will soon be refunded to the respective account holders or their legal heirs. Source: The Hindu
