States owe ₹1.74 crore to MGNREGA workers in delay compensation: Govt data

Maharashtra, Punjab and Uttar Pradesh accounted for the bulk of compensation due, while all states and Union territories have moved to the new rural employment framework

Delay compensation of about ₹1.74 crore was due to workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) across FY25, FY26 and the current financial year up to July 28, government data showed.

 

According to a written reply by the Ministry of Rural Development in the Rajya Sabha on July 31, the compensation due stood at ₹51.76 lakh in financial year 2024-25, rose to ₹1.16 crore in financial year 2025-26, and was ₹6.47 lakh in the current financial year up to July 28.

 

Under Schedule II of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, workers are entitled to compensation at the rate of 0.05 per cent of unpaid wages for every day of delay beyond the fifteenth day after the closure of the muster roll.

 

 

The amount due is verified, approved and paid by state governments under rules notified by them, Minister of State for Rural Development Kamlesh Paswan said in the reply.

Maharashtra accounts for largest share of dues

Maharashtra recorded the highest cumulative compensation due over the three financial years at about ₹55.08 lakh. This included ₹26.37 lakh in FY25, ₹27.16 lakh in FY26 and ₹1.54 lakh in the current financial year.

 

Punjab followed with total dues of about ₹27.28 lakh, while Uttar Pradesh recorded nearly ₹28.75 lakh. Uttar Pradesh had the highest compensation due in 2026-27 up to July 28 at ₹3.64 lakh.

 

Jammu and Kashmir recorded cumulative dues of about ₹18.19 lakh, while Arunachal Pradesh had about ₹9.49 lakh due over the three-year period.

 

Bihar’s delay compensation due stood at ₹71,065 in 2024-25, ₹6.59 lakh in 2025-26 and ₹17,488 in 2026-27 up to July 28.

 

No compensation was shown as due during the three years in Andaman and Nicobar Islands, Andhra Pradesh, Dadra and Nagar Haveli and Daman and Diu, Lakshadweep, Puducherry and West Bengal.

All states shifted to VB-G RAM G

The ministry said details of workers registered under MGNREGA had been migrated to the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB-G RAM G) framework under the Transitional Rules, 2026, enabling them to continue demanding and availing employment opportunities without delay.

 

All states and Union territories have also been onboarded onto VB-G RAM G and DBT SPARSH to facilitate timely wage payments, it said.

 

The government added that all works that were under way under MGNREGS on the transition date had been migrated to the new framework for completion under the provisions of the VB-G RAM G Act, 2025.