Kollam, India – A significant financial strain is impacting hundreds of thousands of laborers in Kerala, as the state government faces a mounting debt of over $100 million in unpaid wages under the national employment guarantee scheme. payments have been delayed since October, raising concerns about the financial security of vulnerable workers and the stability of the program itself.The crisis comes despite Kerala exceeding its employment targets, generating 110% of its allocated workdays this year under the program designed to provide a safety net for those in need.
KOLLAM, India – A payment crisis is unfolding in Kerala, with the state government now owing over $100 million to workers under the national employment guarantee scheme. The delayed payments, totaling 805 crore rupees, are impacting hundreds of thousands of laborers, and have not been issued since October.
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Kerala has already surpassed its target of 50 million workdays under the program, having provided 55 million days of employment as of this month. This represents 110% of the labor budget allocated by the central government. Despite the state’s success in generating employment, requests to increase the number of available workdays have been ignored by federal authorities.
India’s national employment guarantee act stipulates that wages must be paid within seven to fourteen days of work completed, with penalties for delays. However, a recent amendment introduced by the central government removes the right to compensation for delayed wages if funds are not available from the central pool.
Last fiscal year, Kerala generated 89.5 million workdays, exceeding its allocated target of 60 million. Through this year to date, the scheme has cost 2,387.42 crore rupees, with 2,049 crore rupees distributed directly to workers’ bank accounts. Total spending last year reached 4,011.53 crore rupees, with 3,488 crore rupees going towards worker wages. The central government covers 100% of administrative costs and worker wages, while the remaining expenses are shared on a 75:25 basis between the central and state governments.
Outstanding Payments Under Employment Guarantee Scheme
*Worker Wages – 405 crore rupees
*Material Costs – 264.03 crore rupees
*Skilled and Semi-Skilled Labor Costs – 48.86 crore rupees
*Administrative Costs – 87.28 crore rupees
Unpaid Wages for Workers (Figures in Crore Rupees)
: Alappuzha – 35.08
Ernakulam – 19.46
Idukki – 20.16
Kannur – 25.00
Kasaragod – 23.12
Kollam – 38.08
Kottayam – 13.09
Kozhikode – 57.26
Malappuram – 27.67
Palakkad – 32.28
Pathanamthitta – 13.66
Thiruvananthapuram – 52.15
Thrissur – 25.10
Wayanad – 23.11
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The mounting debt underscores the challenges faced by Kerala in funding its ambitious employment programs, and raises concerns about the financial stability of the national employment guarantee scheme.
