AI SummaryCentral Sector Scheme for Rehabilitation of Bonded Labourer offers cash support and social help to people rescued from bonded labour. This central scheme of the Ministry of Labour and Employment covers adult men, women, children and cases of extreme exploitation with layered rehabilitation packages, annuity deposits and DBT payments.
Scheme was revamped on January 27, 2022, and is now known as Central Sector Scheme for Rehabilitation of Bonded Labourer-2021. It works as a demand driven scheme, where States and Union Territories send proposals and funds are released against those proposals. As of 2026, the scheme continues to operate and the Ministry keeps guiding States through the Standard Operating Procedure for identification, rescue and prosecution of bonded labour cases.
Central Sector Scheme for Rehabilitation of Bonded Labourer - Introduction
Under the Bonded Labour System (Abolition) Act, 1976, States and Union Territories are directly responsible for identifying, releasing and rehabilitating freed bonded labourers. District Magistrates and Sub-Divisional Magistrates carry out this work with support from Vigilance Committees set up at district and sub-division level.
Ministry of Labour and Employment supports States through this scheme. Government does not ask States for any matching contribution towards the cash rehabilitation package. Once a proposal reaches the Ministry, funds go to the State or Union Territory government and from there to the district concerned for payment to the rescued person.
As per the official update of July 2025, a rescued person can get immediate help up to ₹30,000 from the district fund and then a rehabilitation package of ₹1.00 lakh, ₹2.00 lakh or ₹3.00 lakh depending on the category and level of exploitation. A Standard Operating Procedure issued to all States makes sure rescue, rehabilitation and prosecution happen in a clear and time-bound manner.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Central Sector Scheme for Rehabilitation of Bonded Labourer-2021 |
| Level | Central |
| Scheme For | Individual |
| Beneficiary States | All States and Union Territories |
| Category | Social welfare and empowerment |
| Target Beneficiaries | Rescued bonded labourers |
| Sub Category | Rehabilitation, shelter, money support |
| Benefit Type | Composite |
| DBT Scheme | Yes |
| Nodal Ministry | Ministry of Labour and Employment |
| Official Website | labour.gov.in |
Benefits
Rehabilitation package depends on the category of the rescued person and the level of exploitation proved through documents. Money is given in two parts: a lump sum paid through DBT and an annuity deposit for long-term security.
| Beneficiary Category | Total Support | Annuity Deposit | DBT Amount |
|---|---|---|---|
| Adult Male | ₹1,00,000 | Optional | - |
| Children and Women | ₹2,00,000 | ₹1,25,000 | ₹75,000 |
| Extreme or Exploitation Cases | ₹3,00,000 | ₹2,00,000 | ₹1,00,000 |
Along with the main package, the Ministry also gives States money for:
- ₹4.50 lakh once in three years for each sensitive district to strengthen rescue and rehabilitation work.
- ₹1.50 lakh per evaluatory study, up to five studies in a year, to review how the scheme is working.
- ₹10 lakh per State per year for awareness generation about bonded labour and the help available.
Immediate Support
A rescued person can get urgent cash help up to ₹30,000 from the district fund. Recent State SOPs issued during 2026 direct District Magistrates to release this immediate help through DBT payment soon after the rescue. District administration keeps a permanent Bonded Labour Rehabilitation Fund of at least ₹10,00,000 for such cases.
State and District Responsibilities
States look after skill training, social reintegration and supportive care for children or disabled survivors. Districts manage the local fund, verify documents and release the money through the official Direct Benefit Transfer (DBT) portal.
Eligibility
A person must be formally rescued and released from bonded labour as defined under the Bonded Labour System (Abolition) Act, 1976. District Magistrate verifies the release before any package is approved. Children, women and cases involving sexual exploitation or extreme deprivation get the higher packages of ₹2.00 lakh and ₹3.00 lakh.
Support given under this scheme is supplementary. Eligible people can also receive other legal or social benefits available under different laws and welfare schemes.
Application Process
There is no public online application form for this scheme. District administration builds the proposal for each rescued person and moves it up the chain. Process works in steps:
STEP 1 - After rescue, District Magistrate checks the release certificate and prepares the beneficiary details form for the rescued person.
STEP 2 - District administration sends the consolidated reports to the State government, which then forwards the proposal to the Ministry of Labour and Employment.
STEP 3 - Ministry verifies the proposal and releases funds to the State or Union Territory government.
STEP 4 - State government transfers money to the district, and the District Administration pays the rescued person, mostly through DBT payment.
Services can be tracked on the official UMANG portal when applicable.
Documents Required
Rescued persons do not need to fill forms or upload papers on their own. District authorities collect the records needed for the proposal. These documents include:
- Release Certificate - main paper that proves a person was freed from bondage.
- Beneficiary Details Form - prescribed format used by the district to record personal details and rescue information.
- Consolidated State or District Reports - prepared by local officials and submitted with the proposal for fund release.
References
Official Scheme Guidelines and PIB Update, July 2025
Ministry of Labour and Employment Official Website
FAQ's
How frequently can a State or UT government conduct surveys?
States can carry out surveys once every three years for each sensitive district with financial support from the central government.
How does the scheme handle extreme cases of trafficking?
In cases involving sexual exploitation or high deprivation, the rescued person gets ₹3,00,000 in support, with ₹2,00,000 kept in an annuity account.
Is this financial support available in addition to other government benefits?
Yes, the package is supplementary. Eligible people can also receive other legal or social benefits they are entitled to under different laws and welfare schemes.
What is the role of the District Magistrate in rehabilitation?
District Magistrate is the main contact point for a rescued person. They manage the district rehabilitation fund, approve the immediate help and monitor the reintegration process.
What if a person needs help but was not formally in bondage?
If a person is not in a formal state of bondage but faces extreme hardship, the District Magistrate can still link them to other social welfare schemes.