**Executive Summary**
This document addresses Unstarred Question No. 1570 in Lok Sabha regarding the revision of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) wages in Kerala, answered on December 9, 2025. It outlines the process for wage revision, measures to ensure timely payment, and the impact of MGNREGS. The Central Government revised the wage rate for the financial year 2025-26, with applicability from April 1st of each financial year.
**Key Points / Main Content**
* **Wage Revision and Notification:**
* The Central Government specifies the wage rate for unskilled work under MGNREGS according to Section 6(1) of the Mahatma Gandhi NREGA Act, 2005.
* The Ministry of Rural Development notifies the MGNREGS wage rate for each financial year for all States/UTs, including Kerala.
* Wage rates are revised annually to compensate for inflation, based on the change in the Consumer Price Index for Agricultural Labour (CPI-AL).
* For Kerala, the wage rate for unskilled workers was revised from ₹346 in FY 2024-25 to ₹369 in FY 2025-26, reflecting a 6.65% increase.
* State Governments can provide wages above the rate notified by the Central Government from their own sources.
* **Timely Wage Disbursement:**
* Beneficiaries are entitled to wage payments within 15 days of work completion, as per the Act's provisions.
* The Government of India has issued a Standard Operating Procedure (SOP) to all States/UTs with fixed timelines for wage payment processing.
* The Ministry and States/UTs are working together to improve timely wage payments and have been advised to generate pay orders in time.
* **Measures for Timely Wage Payments:**
* Improvement of the National Electronic Fund Management System (Ne-FMS).
* Consultations with State Governments and stakeholders to ensure timely payments and verify pending claims.
* Formulation of SOP for monitoring timely payment and delay compensation.
* Reviewing payment status with States/UTs during periodic meetings.
* Direct Benefit Transfer (DBT) of wages directly to workers' bank accounts.
* Aadhaar Payment Bridge System (APBS) for direct credit to bank accounts based on Aadhaar.
* National Mobile Monitoring System (NMMS) for real-time attendance capture.
* **Delay Compensation:**
* Wage seekers are entitled to compensation at 0.05% of unpaid wages per day of delay beyond the sixteenth day of muster roll closure.
* Delay compensation rules are notified by the State Government.
* The Ministry regularly reviews the implementation of MGNREGS, including delay compensation payment, in States/UTs.
* **Pending Liabilities:**
* As of December 3, 2025, ₹329.42 crore is pending liability for the wage component in Kerala under MGNREGS.
* Wage payments are directly credited by the Central Government through DBT.
* Sanctions are issued daily through the Public Finance Management System (PFMS).
* Admissible pending liabilities of previous years are reimbursed by the Government of India; all such liabilities up to FY 2024-25 have been cleared, except in West Bengal.
* **Purpose of MGNREGS:**
* The scheme enhances livelihood security in rural areas by providing at least 100 days of guaranteed wage employment to volunteering households.
* **Persondays Generated and Wage Rates (2015-2025):**
| Financial Year | Persondays Generated (In lakh) | Notified wage rate for Kerala for unskilled workers (In Rs.) |
| -------------- | ------------------------------- | ---------------------------------------------------------- |
| 2015-16 | 741.74 | 229 |
| 2016-17 | 684.62 | 240 |
| 2017-18 | 619.59 | 258 |
| 2018-19 | 975.26 | 271 |
| 2019-20 | 802.30 | 271 |
| 2020-21 | 1023.00 | 291 |
| 2021-22 | 1059.66 | 291 |
| 2022-23 | 965.78 | 311 |
| 2023-24 | 994.59 | 333 |
| 2024-25 | 907.54 | 346 |
**Impact Analysis**
**Kerala State Government**
* **Impact**
* Affected by the changes in wage rates and the implementation of timely payment procedures under MGNREGS.
* Responsible for notifying and implementing delay compensation rules.
* **Action Required**
* Ensure timely generation of pay orders and adherence to the SOP for wage payments.
* Verify and approve delay compensation amounts for eligible workers.
**MGNREGS Workers in Kerala**
* **Impact**
* Directly affected by the revision of wage rates and measures to ensure timely payment.
* Entitled to delay compensation for late wage payments.
* **Action Required**
* Ensure their Aadhaar details are linked to their bank accounts for APBS.
* Register for MGNREGS and volunteer for unskilled manual work.
**Ministry of Rural Development**
* **Impact**
* Responsible for notifying and implementing the MGNREGS wage rates and timely payment measures.
* Responsible for ensuring there is effective monitoring and evaluation of the scheme.
* **Action Required**
* Address the pending wage liability of ₹329.42 crore in Kerala.
* Issue sanctions for wage payments daily through PFMS.
Key Entities Referenced
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A demand-driven wage employment scheme aimed at enhancing livelihood security for households in rural areas by providing guaranteed wage employment.
Mahatma Gandhi National Rural Employment Guarantee Act, 2005: The legal framework that establishes the MGNREGS, outlining provisions for wage rates, beneficiary entitlements, and compensation for delayed payments.
Ministry of Rural Development: The central government ministry responsible for notifying MGNREGS wage rates, ensuring timely wage disbursal, and overseeing the implementation of the scheme.
Kerala: The specific state where the MGNREGS wage revision is being discussed and implemented.
GOVERNMENT OF INDIA
MINISTRY OF RURAL DEVELOPMENT
DEPARTMENT OF RURAL DEVELOPMENT
LOK SABHA
UNSTARRED QUESTION NO. 1570
ANSWERED ON 09/12/2025
REVISION OF MGNREGS WAGES IN KERALA
1570. Shri Kodikunnil Suresh:
Will the Minister of RURAL DEVELOPMENT be pleased to state:
(a) whether the Government proposes to revise and enhance the
wage rate under Mahatma Gandhi National Rural Employment
Guarantee Scheme (MGNREGS) in Kerala, considering that the
present notified wage remains below the State’s agricultural
and rural labour wages;
(b) whether the State Government of Kerala has formally
requested a wage hike under MGNREGS and the action taken
thereon;
(c) the steps taken by the Ministry to ensure timely wage
disbursal to MGNREGS workers in Kerala and the current
status of pending wage payments, if any;
(d) whether the Ministry has assessed the impact of low wages on
worker participation, women’s labour force engagement and
livelihood security in the State; and
(e) the details of MGNREGS wage revisions for Kerala during the
last ten years along with corresponding labour budget
allocations, year-wise?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT
(SHRI KAMLESH PASWAN)
(a) & (b): 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).
Page 1 of 5The 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 ₹346, which has been revised to ₹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 its own sources.
(c): 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 scheme. 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:
Page 2 of 5 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.
As on 03.12.2025, an amount of Rs. 329.42 crore is pending liability
for Wage component in the Kerala State under Mahatma Gandhi
NREGS.
Page 3 of 5Here it is also submitted that the wage payments are directly
credited by the Central Government to the accounts of the
beneficiaries through Direct Benefit Transfer 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/ UTs after following due procedures. 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 (except in
case of State of West Bengal).
(d): Mahatma Gandhi National Rural Employment Guarantee
Scheme (Mahatma Gandhi NREGS) which is a demand driven wage
employment Scheme provides for the enhancement of livelihood
security of the households in rural areas of the country by providing
at least one hundred days of guaranteed wage employment in every
financial year to every household whose adult members volunteer to
do unskilled manual work. It provides livelihood security, i.e. fall
back options for livelihood for the rural households, when no better
employment opportunity is available.
(e): Persondays generated and the notified wage rate of unskilled
workers for the State of Kerala under Mahatma Gandhi NREGS for
the last ten financial years from 2015-16 to 2024-25 are given
below:
Financial Persondays Notified wage rate for Kerala for
Year Generated (In lakh) unskilled workers (In Rs.)
2015-16 741.74 229
2016-17 684.62 240
2017-18 619.59 258
2018-19 975.26 271
2019-20 802.30 271
2020-21 1023.00 291
2021-22 1059.66 291
2022-23 965.78 311
2023-24 994.59 333
2024-25 907.54 346
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