Kamal Ghorui
The labour ministry has initiated a process to return unclaimed funds lying in inoperative Employees’ Provident Fund Organisation (EPFO) accounts to subscribers, a move expected to benefit over 3.1 million account holders, labour minister Mansukh Mandaviya said.A pilot phase covering about 0.7 million subscribers will be rolled out shortly after the decision was taken during a weekly review meeting chaired by the minister, according to an ET report.EPFO currently has around 31.86 lakh inoperative accounts holding deposits worth Rs 10,903 crore. Nearly 7.11 lakh of these accounts contain unclaimed balances of up to Rs 1,000, totalling Rs 30.52 crore.The ministry said several accounts are as old as 20 years and have recorded no transactions for the past three years, leading to their classification as inoperative.Accounts selected for the pilot phase already have Aadhaar-linked bank details available with EPFO, enabling the retirement fund body to directly credit the pending amounts to subscribers.Under provisions of the EPF & MP Act, beneficiaries must file claims to withdraw their provident fund savings. However, authorities observed that in many cases the balance amount is too small compared with the documentation required, resulting in a buildup of unclaimed deposits over time.
Scholarship scheme to be strengthened
Alongside the payout initiative, the labour ministry said its education assistance programme for children of unorganised workers will now include a merit-based scholarship of up to Rs 25,000 in addition to the existing welfare-based support.“In order to enhance equity, remove unintended exclusions and ensure policy clarity, the ministry is amending the scheme guidelines to 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,” the labour ministry said in a statement.The ministry said about 0.16 million students have so far received welfare-based financial assistance amounting to Rs 77.9 crore this year, compared with 92,118 beneficiaries who received Rs 31.65 crore in 2024-25.According to the ministry, the initiative aligns with the Code on Social Security, 2020, which seeks to expand social security and welfare measures, including education support, for unorganised workers and their families.
