Labour ministry revises welfare scheme to permit merit-based scholarship access

New Delhi: Students availing the Labour Ministry's welfare-based scholarships will soon be eligible to receive a merit-based scholarship from any central or state government agency. The Ministry of Labour & Employment has undertaken a significant pro-labour reform to strengthen educational support for the children of eligible unorganised workers, reaffirming the government's commitment to inclusive social security and human capital development, an official statement said on Monday.

The ministry administers the welfare-oriented Labour Welfare Scheme (Education Component) -- Financial Assistance for Education to the Wards of Beedi/Cine/Iron, Manganese and Chrome ore (IOMC) /Limestone and Dolomite ore (LSD) /Mica mines workers – Pre & Post-Matric -- which is designed to reduce financial hardship and promote educational continuity among vulnerable worker households.

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 amends the relevant provision of the scheme guidelines. "The revised approach will allow a student who is availing the Ministry's welfare-based scholarship to also receive a merit-based scholarship from any central or state government agency, wherever eligible," according to the statement.

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This reform marks a departure from the earlier provision and ensures that deserving students from unorganised worker families are not denied educational opportunities due to overlapping eligibility conditions. The measure is expected to directly benefit the wards of beedi, cine and non-coal (IOMC/LSD/Mica) mine workers by improving access to higher education and reducing dropout rates.

This progressive reform is expected to benefit additional students, over and above the approximately one lakh beneficiaries each year. 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.

The initiative is fully aligned with the objectives of the Code on Social Security, 2020, which envisages comprehensive social security and welfare measures, including education for unorganised workers and their families. By strengthening welfare-based educational assistance and enabling convergence with merit-based support, the ministry is advancing the implementation of labour codes in letter and spirit.

This reform reiterates the government's steadfast commitment to labour welfare, social justice and educational empowerment, particularly for workers in the unorganised sector.