Home India National Bank For Agriculture and Rural Development Parliament Question: Issues relating to wages under MGNREGS...
Date: 2025-07-22 Category: Not Applicable State: Union Government Country: India

Parliament Question: Issues relating to wages under MGNREGS

Issued by National Bank For Agriculture and Rural Development · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document presents the Ministry of Rural Development's response to questions regarding the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). It provides state and year-wise details of employment provided, clarifies fund allocation, addresses wage payment delays, and details the central share of daily wages and their increases over the last five years. The information pertains to the period of FY 2020-21 to FY 2024-25, with budget allocations extended to FY 2025-26. Key Points / Main Content: MGNREGS Employment: * Annexure I contains State and year-wise details of workers who availed employment under MGNREGS during the last five financial years. MGNREGS Funding: * MGNREGS is a demand-driven wage employment scheme. * The Central Government is committed to providing funds to States/UTs based on the demand for work. * For FY 2024-25 and FY 2025-26, the budget allocation for MGNREGS is ₹86,000 crore each year. * The Ministry of Rural Development monitors employment demand and requests additional funds from the Ministry of Finance as needed. Wage Payment and Delays: * Over 96% of Funds Transfer Orders (FTOs) are generated within 15 days of muster roll closure. * Wage payments are directly credited to beneficiaries' accounts through Direct Benefit Transfer (DBT). * Pending wage liabilities up to FY 2024-25 have been cleared. Wage Rate and Increases: * 100% of wage payments are made by the Central Government directly to beneficiaries via DBT. * The Ministry of Rural Development notifies MGNREGA wage rates annually for States/UTs. * Wage rates are revised annually based on the Consumer Price Index for Agricultural Labour (CPIAL) and are applicable from April 1st of each financial year. * The central government has notified the wage rate, which has increased by approximately 5% on average over the last year and about 29% on average in the previous 5 years. * State Governments can supplement the centrally notified wage rate from their own resources. Currently, Jharkhand, Himachal Pradesh and Odisha provide a top-up. * Annexure II contains State/UT-wise notified wage rates for unskilled workers under MGNREGS for the last five financial years. Impact Analysis: Beneficiaries/MGNREGS Workers: * Impact: Receive wages directly via DBT, with annual revisions to compensate for inflation; may receive supplemental wages from state governments in some cases. * Action Required: Ensure bank accounts are active and linked to DBT to receive wage payments; be aware of the applicable wage rate in their State/UT. State/UT Governments: * Impact: Responsible for submitting fund transfer orders and can supplement central wage rates. * Action Required: Monitor employment demand, submit timely and accurate fund transfer orders, and manage state-level wage supplements if applicable. Ministry of Rural Development: * Impact: Oversees MGNREGS implementation, allocates funds, and notifies wage rates. * Action Required: Monitor employment demand, allocate funds to States/UTs, notify annual wage rates, and ensure timely wage payments through DBT.

Key Entities Referenced

Mahatma Gandhi National Rural Employment Guarantee Scheme: A demand-driven wage employment scheme also known as Mahatma Gandhi NREGS or MGNREGS, aimed at enhancing livelihood security of households in rural areas of India by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. Ministry of Rural Development: The Indian government ministry responsible for the implementation of rural development programs, including MGNREGS. Ministry of Finance: The ministry responsible for managing the finances of the Government of India; it provides additional funds to the Ministry of Rural Development for MGNREGS as required. Direct Benefit Transfer: A mechanism (DBT) used by the Central Government to directly credit wage payments into the accounts of MGNREGS beneficiaries. Public Finance Management System: A system (PFMS) through which the Ministry of Rural Development issues sanctions for wage payments based on fund transfer orders received from states. Consumer Price Index for Agricultural Labour: An index (CPIAL) used by the Ministry of Rural Development to revise MGNREGA wage rates annually to compensate workers against inflation. Jharkhand: One of the three states (along with Himachal Pradesh and Odisha) that provide a top-up to the wage rate notified by the central government under MGNREGS. Himachal Pradesh: One of the three states (along with Jharkhand and Odisha) that provide a top-up to the wage rate notified by the central government under MGNREGS. Odisha: One of the three states (along with Jharkhand and Himachal Pradesh) that provide a top-up to the wage rate notified by the central government under MGNREGS.
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O.I.H. GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT LOK SABHA UNSTARRED QUESTION NO. 456 ANSWERED ON 22/07/2025 ISSUES RELATING TO WAGES UNDER MGNREGS 456. SHRI RAJEEV RAI: Will the Minister of RURAL DEVELOPMENT be pleased to state: (a) the details of the workers provided with employment under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) during the last five years, State and year- wise; (b) whether funds under MGNREGS have been continuously reduced during the said period; (c) if so, the details thereof and if not, the reasons therefor; (d) the number and details of the labourers receiving the payment of wages delayed by more than a month during the last five years, State and year-wise; (e) the central share of daily wages provided daily by the Government to each labourer, State-wise; and (f) the details of daily wages increased in this regard during the last five years, year-wise? ANSWER MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI KAMLESH PASWAN) (a): State and year-wise details of workers who availed of employment under Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) during the last five financial years are given at Annexure-I. (b)& (c): Mahatma Gandhi NREGS is a demand-driven wage employment scheme. Funds release to States/UTs is a continuous process, and the Central Government is committed to making funds available to States/UTs for the implementation of the scheme as per the demand for work on the ground. Page 1 of 5Regarding budget allocation for Mahatma Gandhi NREGS, it is submitted that, for the financial year 2024-25, budget allocation of ₹86,000 crore has been made, which was the highest ever allocation for scheme at the Budget Estimate (BE) stage since inception. In the financial year 2025-26, the Government has retained this allocation at ₹86,000 crore, ensuring continued support for rural employment. Here it is also submitted 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): Under Mahatma Gandhi NREGS during the last five years, more than 96% of Funds Transfer Orders (FTOs) have consistently been generated within 15 days of closure of muster roll. The Scheme is a demand-driven wage employment programme under which wage payments are directly credited by the Central Government into the accounts of beneficiaries through the Direct Benefit Transfer (DBT) protocol. Sanctions for wage payments are issued daily by the Ministry through the Public Finance Management System (PFMS) based on fund transfer orders received from the States after due procedures. At the beginning of each financial year, admissible pending liabilities of the previous year, if any, are duly reimbursed by the Government of India. Accordingly all pending wage liabilities upto FY 2024-25 have already been cleared. (e) & (f): Under Mahatma Gandhi NREGS, 100% of wage payments are made by the Central Government directly to the accounts of beneficiaries through DBT mode. 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. 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. Page 2 of 5Using the present methodology of wage rate calculation, the central government has notified the wage rate and it has increased by around 5% (average) over the last year and around 29% (average) in the previous 5 years. However, State Governments can provide wages over and above the wage rate notified by the Central Government from its own sources. Currently, three States i.e. Jharkhand, Himachal Pradesh & Odisha are providing a top-up over and above the wage rate notified by the central government. State/UT-wise notified wage rates for unskilled workers under Mahatma Gandhi NREGS during the last five financial years are given at Annexure-II. ***** Page 3 of 5Annexure-I Annexure referred to in reply to part (a) of LokSabhaUnstarred Question No.456 dated 22.07.2025. State and year-wise details of workers who availed of employment under Mahatma Gandhi NREGS during the last five financial years. (Fig. in Crores) FY FY FY FY FY States/UTs 2024-25 2023-24 2022-23 2021-22 2020-21 Andhra Pradesh 0.75 0.75 0.76 0.77 0.80 Arunachal Pradesh 0.03 0.03 0.03 0.03 0.02 Assam 0.26 0.33 0.34 0.40 0.36 Bihar 0.56 0.54 0.58 0.54 0.58 Chhattisgarh 0.45 0.44 0.47 0.55 0.60 Goa 0.00 0.00 0.00 0.00 0.00 Gujarat 0.13 0.15 0.16 0.18 0.19 Haryana 0.05 0.05 0.04 0.06 0.07 Himachal Pradesh 0.10 0.09 0.09 0.10 0.09 Jammu and Kashmir 0.11 0.10 0.10 0.11 0.11 Jharkhand 0.23 0.26 0.25 0.31 0.32 Karnataka 0.52 0.54 0.53 0.64 0.57 Kerala 0.15 0.17 0.18 0.19 0.19 Ladakh 0.00 0.00 0.00 0.00 0.00 Madhya Pradesh 0.58 0.64 0.76 0.96 1.05 Maharashtra 0.51 0.41 0.37 0.37 0.31 Manipur 0.06 0.05 0.04 0.06 0.06 Meghalaya 0.05 0.06 0.06 0.07 0.08 Mizoram 0.02 0.02 0.02 0.02 0.02 Nagaland 0.02 0.05 0.05 0.05 0.04 Odisha 0.34 0.50 0.52 0.56 0.62 Punjab 0.10 0.10 0.10 0.11 0.12 Rajasthan 0.77 0.87 0.88 1.01 1.11 Sikkim 0.01 0.01 0.01 0.01 0.01 Tamil Nadu 0.74 0.79 0.76 0.80 0.79 Telangana 0.42 0.41 0.45 0.49 0.54 Tripura 0.08 0.08 0.08 0.09 0.08 Uttar Pradesh 0.76 0.81 0.84 0.95 1.16 Uttarakhand 0.06 0.06 0.07 0.08 0.09 West Bengal 0.00 0.00 0.20 1.11 1.18 Andaman and Nicobar 0.00 0.00 0.00 0.00 0.00 Dadra and Nagar Haveli and 0.00 0.00 0.00 0.00 0.00 Daman and Diu Lakshadweep 0.00 0.00 0.00 0.00 0.00 Puducherry 0.01 0.01 0.00 0.00 0.01 Total 7.88 8.34 8.75 10.61 11.17 Page 4 of 5Annexure-II Annexure referred to in reply to parts (e)&(f) of LokSabhaUnstarred Question No.456 dated 22.07.2025. State/UT-wise notified wage rates for unskilled workers under Mahatma Gandhi NREGS during the last five financial years (inRs.) Sl. State/UTs 2020- 24-2023 2024-25 No. 21 2021-22 2022-23 1 Andhra Pradesh 237 245 257 272 300 2 Arunachal Pradesh 205 212 216 224 234 3 Assam 213 224 229 238 249 4 Bihar 194 198 210 228 245 5 Chhattisgarh 190 193 204 221 243 6 Goa 280 294 315 322 356 7 Gujarat 224 229 239 256 280 8 Haryana 309 315 331 357 374 Himachal Pradesh Non- 224 236 9 Scheduled Areas 198 203 212 Himachal Pradesh Scheduled 280 295 9(a) Areas 248 254 266 10 Jammu And Kashmir 204 214 227 244 259 11 Ladakh 204 214 227 244 259 12 Jharkhand 194 198 210 228 245 13 Karnataka 275 289 309 316 349 14 Kerala 291 291 311 333 346 15 Madhya Pradesh 190 193 204 221 243 16 Maharashtra 238 248 256 273 297 17 Manipur 238 251 251 260 272 18 Meghalaya 203 226 230 238 254 19 Mizoram 225 233 233 249 266 20 Nagaland 205 212 216 224 234 21 Odisha 207 215 222 237 254 22 Punjab 263 269 282 303 322 23 Rajasthan 220 221 231 255 266 24 Sikkim 205 212 222 236 249 Sikkim (Three Gram Panchayats Named 308 318 333 354 374 Gyanthang, Lachung And 24 (a) Lachen) 25 Tamil Nadu 256 273 281 294 319 26 Telangana 237 245 257 272 300 27 Tripura 205 212 212 226 242 28 Uttar Pradesh 201 204 213 230 237 29 Uttarakhand 201 204 213 230 237 30 West Bengal 204 213 223 237 250 31 Andaman 267 279 292 311 329 31(a) Nicobar 282 294 308 328 347 32 Dadra and Nagar Haveli 258 269 278 297 324 33 Daman & Diu 227 34 Dn Haveli 266 266 284 304 315 35 Puducherry 256 273 281 294 319 ***** Page 5 of 5

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