Lok Sabha Question No. 4150 (UNSTARRED), answered on 2025-08-19
Subject: Wage Disparity under MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Shri Vishaldada Prakashbapu Patil

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA UNSTARRED QUESTION NO. 4150 ANSWERED ON 19/08/2025

## WAGE DISPARITY UNDER MGNREGS

4150. Shri VishaldadaPrakashbapuPatil:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) the details of reasons for the significant gap between Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)  wages  and  agricultural  labour  wages  in  most  of the States, with MGNREGA wages  on average of Rs. 105 lower than daily wages for agricultural labour;
- (b) the  steps  taken  by  the  the  Ministry  to  address  this  wage disparity  and  ensure  that  MGNREGS  wages  are  more  closely aligned with actual agricultural labour wages to support better rural livelihoods;
- (c) whether the Ministry has considered increasing the budgetary allocation for MGNREGS at the outset of the financial year in line  with  the  recommendations of the Parliamentary Standing Committee on Rural Development; and
- (d) the details of measures implemented to ensure timely payment of wages and delay compensation to MGNREGS beneficiaries, given that only Rs. 2.5 lakh out of Rs. 24 lakh approved delay allowance has been paid in 2023-24, as of November 21, 2023?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI KAMLESH PASWAN)

(a)&(b):    Mahatma  Gandhi  National  Rural  Employment  Guarantee Scheme  (Mahatma  Gandhi  NREGS)  is  a  demand  driven  wage employment  Scheme.  It  provides  livelihood  security,  i.e.  fall  back options  for  livelihood  for  the  rural  households,  when  no  better employment opportunity is available.

As  per  section  6(1)  of  Mahatma  Gandhi  NREGA,  the  Central Government may, by notification, specify the wage rate for unskilled work for Mahatma  Gandhi NREGS  workers. Accordingly, the Ministry  of  Rural  Development  notifies  the  wage  rate  for  unskilled workers  under  Mahatma  Gandhi  NREGA  every  financial  year.  To compensate the Mahatma  Gandhi National Rural Employment Guarantee  Scheme  (Mahatma  Gandhi  NREGS)  workers  against inflation, the Ministry of Rural Development revises the wage rates every financial year based  on  the Consumer  Price  Index  for Agricultural Labourer (CPI-AL).

Using  the  above methodology, Central  Government  has  revised the notified wage rate for FY 2025-26 which is around 5% (average) more than of FY 2024-25.   The latest revised notified wage rate has been made applicable from 1st April, 2025.  However, State Governments  can  provide  wages  over  and  above  the  wage  rate notified by the Central Government from its own resources.

- (c):  Department related Parliamentary Standing Committee on Rural Development and Panchayati Raj has given recommendations regarding increasing the budget allocation.

For  the  financial  year  2024-25,  budget  allocation  of  ₹86,000 crore  was  made  for  the  scheme,  which  was  the  highest  ever allocation  for  scheme  at  the  Budget  Estimate  (BE)  stage  since financial  year  2025-26,  the  Government  has continued inception. In the retained this allocation at ₹86,000 crore, ensuring support for rural employment.

Here  it  is  also  stated  that  keeping  in  view  demand  driven nature  of  the  Scheme,  the  Ministry  of  Rural  Development  closely monitors demand  for employment  at  ground level and seeks additional funds from the Ministry of Finance, as and when required.

- (d):  As  per  the  provisions  of  the  Act,  beneficiaries  are  entitled  to receive wage payments within 15 days of work completion. In order to  ensure  timely  payment,  the  Government  of  India  has  issued  a comprehensive Standard Operating Procedure (SOP) to all States/UTs,  which  defines  fixed  timelines  for  each  stage  of  the wage payment process-from muster roll uploading to FTO approval. The Ministry along with the States/UTs has been making concerted efforts for improving the timely payment of wages. States/UTs have been advised to generate pay orders in time.

The Ministry has taken various steps to ensure timely payment of  wages  to  workers  under  (Mahatma  Gandhi  NREGS).  These include:

-  Improvement of National Electronic Fund Management System (Ne-FMS)
-  Intensive  consultation  with  State  Governments  and  other stakeholders for ensuring timely payment of wages, verification of pending and delay compensation claims etc.
-  Formulation of Standard Operating Procedure for monitoring of timely payment and payment of delay compensation.
-  Reviewing the status of timely payment and payment of delay compensation with the States/ UTs during periodic meetings, Performance  Review  Committee  meetings,  Mid-term  Reviews etc.

Further,  continued  efforts  have  been  undertaken  by  the  Ministry through  various  technological  interventions  for  ensuring  timely payments of wages. Some of the key interventions include:

-  Direct  Benefit  Transfer  (DBT):  Wages  are  transferred  directly from the central account to workers' bank accounts, minimizing the role of intermediaries and reducing fund misappropriation. This has proven to be effective in enhancing transparency  and  preventing  leakages.  Almost  100%  of  the funds  are  managed  electronically  with  the  wage  payment made entirely through Direct Benefit Transfer (DBT) protocol.
- Aadhaar Payment Bridge System (APBS): APBS conversion is a major reform process where benefits are credited directly into the bank accounts based on the Aadhaar of the workers under Mahatma Gandhi NREGS, preferably Aadhaar Based Payments, cutting  several  layers  in  the  delivery  process.  APBS  helps  in better  targeting,  increasing  the  efficiency  of  the  system  and reducing the delays in payments, ensuring greater inclusion by curbing  leakages  thereby  promoting  greater  accountability
-  and transparency.
-  National Mobile Monitoring System (NMMS): Real-time attendance  capture  through  geo-tagged  photographs  at  the worksite ensures accurate and timely recording of attendance, which helps in  timely payment of wages.

As per the provisions mentioned in Schedule-II of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (Mahatma Gandhi NREGA), wage seekers shall be entitled to receive payment of  compensation for  the  delay,  at  the  rate  of  0.05%  of  the  unpaid wages  per  day  of  delay  beyond  the  sixteenth  day  of  closure  of muster  roll. Delay  compensation   rules  are   notified  by  the  State Government concerned. The amount due  for compensation is duly verified and approved, and then paid by the State Government.

The Ministry regularly reviews the performance of the implementation of Mahatma Gandhi NREGS (including delay compensation), including payment of delay compensation in States/UTs  through  various  fora  viz.,  Mid-Term  Review,  Labour Budget  meetings,  Labour  Budget  Revision  meetings,  Programme Review meetings.

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