**Policy Summary: Rehabilitation of Bonded Labourers in India**
This policy summary pertains to the Indian government's initiatives for the rehabilitation of bonded laborers, following the abolishment of the Bonded Labour System through legislation, initially in 1975 and subsequently solidified by the Bonded Labour System Abolition Act, 1976. The core responsibility for identifying, releasing, and rehabilitating freed bonded laborers rests with the State/Union Territory governments, with District Magistrates and Sub-Divisional Magistrates entrusted with specific duties and responsibilities. Vigilance Committees are constituted at the district and sub-divisional levels to assist these officials. The Act also empowers Executive Magistrates to exercise judicial powers for the trial of offenses.
To support the States/UTs, the Ministry of Labour and Employment implements the Central Sector Scheme for Rehabilitation of Bonded Labourer 2021 (revamped from the 2016 scheme on January 27, 2022). This demand-driven scheme provides funds to States/UTs upon proposal submission, which are then channeled to the concerned districts. Key features include:
* No matching contribution is required from State Governments for cash rehabilitation assistance.
* Immediate financial assistance of up to Rs. 30,000 per case is provided for rehabilitation.
* Rehabilitation assistance of Rs. 1.00 lakh, Rs. 2.00 lakh, and Rs. 3.00 lakh is allocated to rescued bonded laborers based on their category and level of exploitation upon proof of bondage.
* Financial assistance of Rs. 4.50 lakh (once in three years) per sensitive district, Rs. 1.50 lakh for evaluatory studies (maximum of five per year), and Rs. 10 lakhs per State per annum for awareness generation are also provided.
The policy mandates the creation of a Bonded Labour Rehabilitation Fund at the District level by each State/UT, with a permanent corpus of at least Rs. 10 lakhs, to facilitate immediate financial assistance to released bonded laborers.
To streamline the process, a Standard Operating Procedure (SOP) for identification, rescue, and prosecution has been issued to all State Governments. Regular sensitization programs and coordination efforts with field-level functionaries, including District Magistrates, Superintendents of Police, and Labour Department officials, are conducted under the aegis of the National Human Rights Commission and State Human Rights Commissions to improve conviction rates.
The information regarding this scheme was provided by the Union Minister of Labour and Employment.
Key Entities Referenced
Ministry of Labour Employment: The Indian government ministry responsible for labour and employment policies.
Bonded Labour System Abolition Act, 1976: The Indian law that abolished the bonded labour system.
Central Sector Scheme for Rehabilitation of Bonded Labourer 2021: A scheme by Ministry of Labour and Employment to assist in the rehabilitation of released bonded labourers.
District Magistrates: Administrative head of an Indian district, responsible for maintaining law and order.
SubDivisional Magistrates: A sub-divisional level officer responsible for maintaining law and order.
Vigilance Committees: Committees constituted at district and subdivisional level to assist the DistrictSubdivisional Magistrates.
National Human Rights Commission: An Indian statutory body responsible for the protection and promotion of human rights.
Lok Sabha: The lower house of the Parliament of India.
Ministry of Labour & Employment
REHABILITATION OF BONDED LABOURERS
Posted On: 28 JUL 2025 5:21PM by PIB Delhi
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(The Bonded Labour System has been abolished by law throughout the country with effect from 25 October,
1975. This was later replaced by the Bonded Labour System (Abolition) Act, 1976. As and when existence of
bonded labour is detected, such persons are identified for rehabilitation. Under the Bonded Labour System
(Abolition) Act, 1976 identification, release and rehabilitation of freed bonded labour is the direct
responsibility of the concerned States/Union Territories.
Under the Act, the District Magistrates and Sub-Divisional Magistrates have been entrusted with certain
duties/responsibilities. To assist the District/Sub-divisional Magistrates in discharge of their statutory duties,
Vigilance Committees are constituted at district and sub-divisional level. Further, the Act also empowers
Executive Magistrates to exercise powers of Judicial Magistrate of first or second class for trial of offences.
In order to assist the States/UTs in their task of rehabilitation of released bonded labourers, the Ministry of
Labour & Employment was implementing a Central Sector Scheme for Rehabilitation of Bonded Labourer-
2016, which was revamped with effect from 27.01.2022 and is henceforth known as Central Sector Scheme
for Rehabilitation of Bonded Labourer-2021. This scheme is demand driven where funds are provided to
States/UTs on receipt of proposal from them. Further, the funds are transferred by the State/UT Government
to the concerned District for the purpose of the Bonded Labourer Rehabilitation Scheme. The salient features
of the scheme are as follows:
The State Governments are not required to pay any matching contribution for the purpose of cash
(cid:108)
rehabilitation assistance.
It provides for immediate financial assistance up to Rs.30,000/- for each case of rehabilitation.
(cid:108)
Rehabilitation assistance to the tune of Rs.1.00 lakh, Rs.2.00 lakh and Rs.3.00 lakh is provided to rescued
(cid:108)
bonded labourers based on their category and level of exploitation upon proof of bondage.
The Scheme also provides for financial assistance of Rs.4.50 lakh once in three years per sensitive
(cid:108)
district, Rs. 1.50 lakh for Evaluatory studies (maximum of five Evaluatory Studies per year) and Rs.10
lakhs per State per annum for Awareness Generation.
A Bonded Labour Rehabilitation Fund is required to be created at the District level by each State/UT
(cid:108)
with a permanent corpus of at least Rs. 10 lakhs. This fund is utilised for extending immediate financial
assistance to the released bonded labourers.
Moreover, to ensure timely disbursement of financial aid to the rescued labourers, Standard Operating
Procedure (SOP) for identification and rescue of bonded labourers and prosecution of offender has been
framed and issued to all the State Governments for strengthening the prosecution machinery. Regular
sensitization programmes and coordination with the field level functionaries such as District
Magistrate/Superintendent of Police/Labour Department officials at the district and state level are held under
the aegis of National Human Rights Commission, State Human Rights Commissions for improving the
conviction rate in such cases.
This information was given by the Union Minister of Labour and Employment, Dr. Mansukh Mandaviya in a
written reply to a question in Lok Sabha today.
*****MG/DK
(Release ID: 2149348)