Govt Eases Scholarship Rules for Wards of Unorganised Workers

The reform, aligned with the objectives of the Code on Social Security, 2020, is aimed at strengthening social protection and removing barriers that previously restricted overlapping financial support.

In a major boost to educational access for vulnerable families, the Ministry of Labour & Employment has amended its scholarship framework to allow children of eligible unorganised workers to simultaneously avail welfare-based and merit-based scholarships.

The reform, aligned with the objectives of the Code on Social Security, 2020, is aimed at strengthening social protection and removing barriers that previously restricted overlapping financial support.

Key Reform: Dual Scholarship Eligibility

Under the revised guidelines, students receiving the Ministry’s welfare-oriented scholarship under the Labour Welfare Scheme (Education Component) will now be eligible to also receive merit-based scholarships from Central or State Government agencies, wherever they qualify.

Earlier provisions restricted such dual benefits, leading to unintended exclusions for deserving students.

The amendment ensures that financial assistance designed for vulnerable worker households does not inadvertently limit access to additional merit-based opportunities.

About the Labour Welfare Education Scheme

The scheme, formally titled:

“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”,

is a need-based initiative aimed at reducing financial hardship and promoting educational continuity among families of workers in the unorganised sector.

Importantly, the scheme:

• Is need-based, not merit-based

• Covers both Pre-Matric and Post-Matric education

• Benefits wards of Beedi, Cine and Non-Coal Mine workers

Approximately one lakh students benefit from the scheme annually. The latest reform is expected to increase this number by enabling additional students to access layered financial support.

Expanding Access, Reducing Dropouts

By permitting convergence between welfare and merit scholarships, the Ministry aims to:

• Improve access to higher education

• Reduce dropout rates

• Enhance financial stability for worker households

• Encourage academic progression without penalty for merit

The move is expected to particularly benefit students pursuing higher studies, where educational costs often rise sharply and merit-based scholarships can significantly offset expenses.

Advancing the Code on Social Security

The reform reinforces the broader goals of the Code on Social Security, 2020, which envisions comprehensive welfare measures for unorganised workers and their families, including education support.

By harmonising welfare and merit-based assistance, the Ministry has taken a step toward more inclusive and equitable policy implementation, ensuring that no student is disadvantaged due to overlapping eligibility rules.

Commitment to Labour Welfare and Social Justice

The Ministry said the amendment reflects the Government’s continued focus on labour welfare, social justice and educational empowerment — especially for workers in traditionally vulnerable sectors such as Beedi rolling, film industry labour, and non-coal mining.

With expanded financial backing and clearer policy alignment, the reform is set to strengthen long-term livelihood prospects for thousands of students, enabling them to pursue higher education and build more secure futures.