In a major announcement, the Ministry of Labour and Employment on Monday said small balances lying in around 6 lakh “inoperative accounts” linked to the Employees’ Provident Fund Organisation (EPFO) will be refunded without any claims or paperwork.At present, there are around 31 lakh inoperative EPFO accounts. Out of these, nearly six lakh accounts have Rs 1,000 or less deposits. For accounts that are linked with Aadhaar, the transfer will happen immediately. For others, the money will be sent in phases, it said.Sources in the ministry said the same method may be extended to the remaining 25 lakh inoperative accounts in the future. An EPFO account is treated as ‘inoperative’ if there is no transaction or activity for three consecutive years.According to official data, there are 31.86 lakh inoperative EPFO accounts, with cumulative deposits amounting to around Rs 10,000 crore. Within the Rs 0-Rs 1,000 balance category, there are approximately 7.11 lakh accounts, holding a combined total of Rs 30.52 crore.The move is seen as a step towards providing direct relief to account holders as it aims to simplify settlements and help workers access their unused savings faster.Provident Fund (PF) accounts are savings schemes for employees in India, managed by the Employees’ Provident Fund Organisation. Employees and employers contribute a portion of the salary to the EPF account, which earns interest over time.The ministry also announced to have amended the Labour Welfare scheme to reduce financial hardship and promote educational continuity among vulnerable worker households.”Under the amended rule, a student availing the ministry’s welfare-based scholarship can also receive a merit-based scholarship from any central or state government agency, wherever eligible. The move marks a departure from the earlier provision, and ensures that deserving students from unorganized worker families are not denied educational opportunities due to overlapping eligibility conditions,” the ministry said.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.