New Delhi (Gurpreet Singh): In a major pro-worker initiative, the Ministry of Labour and Employment announced on Monday that small balances in approximately 6 lakh “inoperative” accounts within the Employees’ Provident Fund Organisation (EPFO) will be refunded automatically. This move eliminates the need for formal claims or arduous paperwork, providing direct relief to hundreds of thousands of account holders.
Currently, the EPFO manages roughly 31 lakh inoperative accounts—defined as those with no activity for three consecutive years. Of these, nearly 6 lakh accounts hold balances of ₹1,000 or less. For accounts already linked with Aadhaar, the ministry confirmed that transfers will occur immediately. For the remaining accounts in this category, the refund process will be rolled out in phases.
Official data reveals the scale of unused savings within the system: 31.86 lakh inoperative accounts hold a staggering cumulative deposit of approximately ₹10,000 crore. Within the smallest balance bracket (₹0 to ₹1,000), there are roughly 7.11 lakh accounts holding a combined total of ₹30.52 crore. Sources within the ministry suggest that if this automated pilot proves successful, the same streamlined method may be extended to the remaining 25 lakh inoperative accounts in the future.
Beyond financial settlements, the Ministry also announced significant amendments to the Labour Welfare scheme to support educational continuity for vulnerable households. Under the new rules, students from families of unorganized workers—including Beedi, Cine, and Non-Coal mine workers—can now avail themselves of both ministry welfare scholarships and merit-based scholarships from other central or state agencies.
This policy shift removes previous restrictions that barred students from receiving overlapping benefits. By allowing “double” scholarship eligibility, the government aims to reduce dropout rates among deserving students and ensure that financial hardship does not act as a barrier to higher education. This dual-pronged approach reflects a broader effort by the Ministry to modernize the EPFO system while strengthening the social safety net for India’s workforce.
