Lok Sabha Question No. 1638 (UNSTARRED), answered on 2026-02-10
Subject: Arrears of Wages under MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Shri K Sudhakaran

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT

## DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA UNSTARRED QUESTION NO. 1638 ANSWERED ON 10/02/2026

## ARREARS OF WAGES UNDER MGNREGS

## 1638. Shri K Sudhakaran:

Will the Minister of RURAL DEVELOPMENTbe pleased to state:

- (a) whether the Government is aware that as of early 2026, Kerala faces  wage  arrears  of  overRs.  248  crore  under  Mahatma Gandhi National Rural Employment Guarantee Scheme(MGNREGS), causing severe distress to 26 lakh active workers;
- (b) the reasons of the Government for notifying a daily wage of Rs. 369-Rs. 370 for Kerala infinancial year 2025-26, which is less than  half the  actual  market  rate  for  rural labour  in the State,leading to a mass exodus of workers from the scheme;
- (c) whether  the  introduction  of  the  Viksit  Bharat  Guarantee  for Rozgar and Ajeevika Mission(Gramin) Bill, 2025, which mandates a 60:40 funding pattern, effectively penalizes efficient Stateslike Kerala by shifting a Rs. 1,600 crore annual financial burden onto the State exchequer; and
- (d) whether the new provision to "pause" work for 60 days during agricultural  seasons violatesthe rights-based "demand-driven" essence of the original 2005 Act?

## MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT

## ANSWER (SHRI KAMLESH PASWAN)

(a): Under Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS), the Wage payments are directly credited by the Central Government  to the accounts of the beneficiaries through Direct Benefit Transfer protocol. As Sanction for  payment  of  Wages  are  issued  by  Ministry  daily  through  PFMS (Public Finance Management System), after receipt of funds transfer orders from States/UTs after following the due procedures, the fund release status keeps updating on a daily basis. At the beginning of

each  financial  year,  admissible  pending  liabilities  of  the  previous years,  if  any,  are  duly  reimbursed  by  the  Government  of  India. Accordingly, all due and admissible pending wage liabilities upto FY

2024-25 have already been cleared.

The pending liabilities for the wage component under Mahatma Gandhi NREGS in respect of Kerala as on 09.02.2026 are Rs 209.32 crore.

Further, it is also stated that during the current financial year 2025-26  (as  on  08.02.2026),  an  amount  of  Rs.  2617.69  crore  has been released for the wage component to Kerala.

(b):    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 National Rural Employment Guarantee Act (Mahatma Gandhi NREGA), 2005, the Central Government may, by notification, specify the wage rate for unskilled work for its beneficiaries. Accordingly, the Ministry of Rural Development notifies Mahatma Gandhi NREGA wage rate for every financial year for States/UTs including Kerala. To  compensate  the  Mahatma  Gandhi  NREGA  workers  against inflation,  the  Ministry  of  Rural  Development  revises  the  Wage  rate every year based on change in Consumer Price Index for Agricultural Labour (CPI-AL). The wage rate is made applicable from 1st April of each financial year.

In  case  of  Kerala,  the  notified  wage  rate  for  the  State  of Kerala for unskilled workers under Mahatma Gandhi NREGS for the financial year 2024-25 was Rs. 346, which has been revised to Rs. 369  for  the  financial  year  2025-26.  This  reflects  an  increase  of approximately 6.65% in the wage rate.

Further,  it  is  also  submitted  that  State  Governments  can provide wages over and above the wage rate notified by the Central Government from their own sources.

(c):    The concern  that  a 60:40  Centre-State  financial sharing pattern would impose an excessive burden on States is not borne

out  by  the  historical  and  policy  context  of  rural  employment programmes in India.

Historically, many major rural employment schemes in the country have operated on shared funding models between the Centre and the States. For example:

- The National Rural Employment Programme (NREP) followed a 75:25 sharing pattern.
- The Rural Landless Employment Guarantee Programme (RLEGP) adopted a 50:50 model.
- The JawaharRozgarYojana (JRY) operated on an 80:20 basis.
- Schemes such as SGRY, EAS, and JGSY were also implemented on a Centre-State sharing pattern, generally in the ratio of 75:25.

Presently,  almost  all  Centrally  Sponsored  Schemes  (CSS) across sectors are being implemented on the 60:40 sharing model. The  60:40  pattern  adopted  under  this  Act  is  therefore  consistent with the broader framework of Centrally Sponsored Schemes.

This model promotes cooperative federalism by making States active partners in rural development. The journey from Viksit Gram Panchayats to a Viksit Bharat requires strong State ownership and accountability,  and  the  shared  funding  framework  reinforces  this partnership approach.

Further,  special  protective  provisions  have  been  made  for North-Eastern and Himalayan States and Union Territory (Himachal Pradesh,  Uttarakhand  and  Jammu  &  Kashmir),  where  a  90:10 financially

Centre-State sharing pattern applies, ensuring that constrained States are not placed under undue stress.

In addition, the Act clearly provides that in the event of natural disasters,  pandemics,  or  other  extraordinary  circumstances,  State Governments may recommend special operational relaxations to the Centre. The Central Government is empowered to allow expansion of permissible works, relaxation in documentation procedures, and temporary enhancement of employment provisions in such situations. The framework is thus not rigid, but responsive, flexible, and sensitive to emerging needs.

Overall,  the  funding  pattern  is  designed  to  balance  fiscal responsibility,  State  participation,  and  national  rural  development priorities.

(d): The  provision  regarding  a  pause  of  an  aggregate  of  60  days during  peak  agricultural  seasons  has  been  introduced  to  maintain balance in the rural economy and to support agricultural operations, which remain the primary source of livelihood in rural India.

Nearly 86% of farmers in the country belong to the small and marginal  categories.  During  peak  sowing  and  harvesting  periods, these  farmers  require  labourers  for  timely  agricultural  operations. The  provision  has  therefore  been  designed  keeping  these  ground realities in view.

Under this framework, States are empowered to notify, based on local agro-climatic conditions, a cumulative period of an aggregate  of  60  days  during  peak  sowing  and  harvesting  seasons when works under the programme may be temporarily paused. This is  intended  to  ensure  that  agricultural  activities  are  not  adversely affected due to labour shortages.

It  is  important  to  clarify  that  the  statutory  guarantee  of  125 days of employment remains fully intact. The provision relates only to  timing  and  sequencing  of  works,  not  to  any  reduction  in  the employment entitlement. The objective is to strengthen both rural livelihoods and agricultural productivity in a complementary manner.

Thus, the measure is aimed at harmonising wage employment with  the  needs  of  the  agricultural  sector  so  that  both  can  grow together, ultimately benefiting rural households.

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