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Delay Compensation of more than 1250 crore pending to NREGA Wage Seekers


As per the latest available data, delay compensation of more than Rs 1250 crore is pending to NREGA wage seekers for the period between 2013-14 and 2016-17. West Bengal has the highest amount pending with Rs 344 crore.


As per the latest available data, delay compensation amounting to Rs 1266 crore is pending to NREGA wage seekers across the country. The Ministry of Rural Development (MoRD) has now sent a reminder to all the State Governments asking them to immediately clear the delay compensation from the funds available with the State Governments. Factly had earlier reported that 2/3rd of all the wage payments under the NREGS were delayed in 2015-16.

What is Delay Compensation?

As per the new guidelines, the MNREGA workers are entitled to receive delay compensation at the rate of 0.05% of the unpaid wages per day for the entire duration of delay beyond the 16th day of the completion of work & closure of the muster roll. The software calculates amount of delay compensation payable to workers based on various parameters. The Programme Officers (POs) have to verify the claims and approve the amounts within 15 days from when the delay compensation became due.


Why now?

In December 2015, Swaraj Abhiyan had filed a Writ Petition in the Supreme Court regarding drought like situation in various states and also requested the court to issue directions to the government to release various entitlements due to the citizens. In its judgment on 13th May, 2016, the Supreme Court directed the government to ensure that compensation for delayed payment is immediately paid to workers.


More than Rs 1250 crore of delay compensation is pending

As of November 2016, more than Rs 1300 crore of delay compensation was payable for the years 2013-14 to 2016-17. Out of this, only Rs 35.7 crore has been paid while the rest of the amount is pending. Delay compensation worth more than Rs 500 crore is pending for both the years 2014-15 and 2015-16.


More than Rs 340 crore is pending in West Bengal

Among the states, West Bengal has more than Rs 344 crore of delay compensation pending between 2013-14 and 2016-17 followed by Tamil Nadu with a pending amount of Rs 115.69 crore and Uttar Pradesh with Rs 106.16 crore. A total of nine (9) states have a pending amount in excess of Rs 50 crore while 21 states have a pending amount of more than 10 crore. A relatively smaller state like Nagaland has more than 50 crore pending in delay compensation.


More than 90% of the delay compensation is pending in 27 States/UTs

In nine (9) states, almost the entire amount of delay compensation is pending as of November 2016 including states like Uttar Pradesh, Nagaland, Bihar & West Bengal. More than 90% of the delay compensation is pending in 27 States/UTs across the country. The pending delay compensation is less than 90% of the payable amount only in the six states of Mizoram, Jharkhand, Telangana, Arunachal Pradesh, Goa and Maharashtra. It is less than 50% only in Goa & Maharashtra.

Featured Image: NREGA


About Author

Rakesh has been working on issues related to Right to Information (RTI) for a decade. He is a Data/Information enthusiast & passionate about Governance/Policy issues.

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