Agencies to compensate for MGNREGS wage delays

This move to reform the most fundamental aspect of the scheme comes just days before dates for Assembly elections.

Cracking the whip on delayed wage payments under its flagship rural employment scheme,the Rural Development ministry has said beneficiaries would be compensated in case of delays and those functionaries/agencies responsible for such delay would have to pay the compensation amount.

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) promises 100 days of work each year to every rural household. The Act stipulates that wage payments have to be made within 15 days to the beneficiary. However,complaints of delayed wage payments have plagued the scheme since it was first implemented in February 2006.

This move to reform the most fundamental aspect of the scheme comes just days before dates for Assembly elections due end of this year are to be announced. Lok Sabha polls are also due next year.

The scheme was,to a great extent,responsible for bringing the Congress back to power with a decisive mandate in the 2009 elections and is seen by the party as its key welfare legislation.

In a letter to CMs of all states dated September 26,Rural Development minister Jairam Ramesh has said the ministry is amending Schedule II of the Act to ensure timely wage payment and adequate compensation in the case of delays and to increase transparency and accountability in the process.

Wages amounting to Rs 2,700 crore (25 per cent of total wage payments across the country) have been delayed over 15 days. Out of this,around Rs 125 crore of payments have been delayed more than 90 days, the letter points out.

According to the amendments,if the payment is not made within the stipulated period,a compensation at the rate of 1/4 to 1/2 of the total unpaid wages (depending on the number of days) will be given to the beneficiary. Moreover,the states will have to fix responsibility of functionaries and in case of any delay at any step,the compensation amount will be recovered from the responsible functionary/agency. This entire process will be closely monitored through MIS.

Story continues below this ad

Streamlining wage payments is the most fundamental and vital step to guaranteeing MGNREGAs entitlements to its beneficiaries, Ramesh has said in his letter.