FAQs on Payment of Wages

How are the payments of wages made to the wage seekers?

As per Para 30, Schedule II the payment of wages shall, unless so exempted by the Central Government, be made through the individual savings accounts of the workers in the relevant banks or post offices.

Who decides regarding opening of account in post office / bank?

The choice among different service providers (commercial/scheduled banks/ RRBs/post offices/ mobile banks) is left to the decision of the wage seekers as per their convenience.

Is there any authentic document required to open the wage seeker account?

MGNREGS Job Card, duly signed by the concerned officer is an officially valid document for opening a bank account under the Know Your Customer (KYC) norms.

In what circumstance, a Gram Panchayat (GP) can make cash payments?

In districts/blocks/GPs, where the penetration and network of banks and post offices is weak, PIAs may disburse wages in cash. However, this may be resorted to only with prior intimation to the Ministry and approval of the State Government who will be responsible for ensuring the requisite security for this purpose. Every effort must be made to video record the cash payment process.

Who constitutes the payment committee?

Payment Committee is to be constituted by the DPC by inviting nominations from concerned GP and PO.

The Payment Committee should comprise the following:

• GP Head/Sarpanch or Traditional Tribal Head (or Mukhiya in Scheduled Areas)
• GP member from the ward where the works have been executed
• Two women SHG members, (wherever applicable)
• At least three MGNREGA workers from the GP, out of whom at least one should be a woman and at least one should be from SC/ST
• School headmaster/teacher.

What is the schedule for the disbursement of wage?

As per Section 3(3) of the Act disbursement of daily wages shall be made on a weekly basis or in any case not later than a fortnight after the date on which such work was done.

Can different amount of wages be paid to men and women workers?

No. As per Para 31, Schedule II, there shall be no discrimination solely on the ground of gender and the provisions of the Equal Remuneration Act, 1976 (25 of 1976), shall be complied with.

What are the key activities that are to be provided by State Government for use of e-FMS?

The following activities are to be provided by State Government for use of e-FMS:

• Identification of Key Bank(s) by the State.
• Signing up of an Agreement / MoU between the State and the Key Bank(s) to enable a seamless electronic payment mechanism.
• Coordination with the selected Key Bank(s) for interfacing NREGASoft with the Bank’s Core Banking System.
• Updation /verification and freezing of bank accounts of stakeholders.
• Identification of payment levels and signatories (makers and checkers) at these levels.
• Issuance of Digital Signatures to all signatories.
• Training the signatories on usage of Digital Signatures for approving the payments.
• Positioning adequate technical manpower at State / district for handholding support and troubleshooting.

Can the wage seeker be paid the wages immediately after closure of muster roll?

No. Wage payments are made after due verification of muster rolls, onsite physical measurement of works and valuation thereof.

Is there any compensation for delay in payment of wages?

Para 29, Schedule II of MGNREGA 2005 has laid down a detailed procedure for establishing a delay compensation system. As per the system, MGNREGA workers are entitled to receive delay compensation at a rate of 0.05 per cent of the unpaid wages per day for the duration of the delay beyond the sixteenth day of the closure of the MR.

Who will be responsible to pay the compensations?

The State Government shall be responsible for identifying various processes to be completed between the time muster is closed and wage payment if made and notifying the (a) process (b) functionary/agency responsible for completing the process and the (c) period for completing the process. These details are to be uploaded in NREGASoft so that the IT system automatically calculates the liability of each functionary/agency in case of a delayed payment.

It shall be the duty of such designated DPC or PO to

• identify step-wise processes and sub- processes leading to determination and payment of wages
• fix activity-wise maximum time limits and
• allocate responsibilities to the functionary/agency in the discharge of their specific function as identified/fixed under the system.

What social security is provided for MGNREGS workers?

Rashtriya Swasthya Bima Yojana (RSBY) provides social security exclusively for MGNREGS workers. RSBY has been extended to all Mahatma Gandhi NREGA workers/ beneficiaries who have worked for more than 15 days in the preceding financial year.

Source : FAQs of MGNREGA operational guidelines - 2013