Tamil Nadu: AIAWU Demands Timely Wage Disbursal for MNREGA Workers, Welfare Board

The major challenge faced by Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers continues to be erratic wage disbursal and low remuneration, even as workers push for an increase in both the number of working days and fair wages.

Several state governments, including the Government of Tamil Nadu, have had to send repeated reminders to the Union Government for the release of pending funds for wage payments from the previous financial year. After a prolonged delay, the Union Ministry for Rural Development disbursed Rs 2,999 crore in the first week of May, of which Rs 2,851 crore was allocated for clearing wage dues in Tamil Nadu.

The AIAWU has urged the Union Government to strengthen MNREGA by increasing its budgetary allocation to Rs 4 lakh crore, in contrast to the Rs 86,000 crore proposed by the Union Finance Minister in the 2025–26 budget.

Weakening MGNREGA

MGNREGA workers—mostly women from socially and economically disadvantaged backgrounds—depend heavily on the scheme to meet basic needs. Originally launched as a pilot project in 2006 and expanded nationwide in 2008, MNREGA was part of the Common Minimum Programme (CMP) proposed by Left parties supporting the UPA government in 2004.

Since the Bharatiya Janata Party (BJP) assumed power in 2014, there have been consistent allegations that the government is systematically weakening the scheme. These concerns are based on reduced allocations, wage stagnation, and delayed payments.

In the 2025–26 Union Budget, the allocation for MGNREGA remained unchanged at Rs 86,000 crore. However, nearly 20% of this amount has been earmarked for clearing previous dues, effectively reducing the operational budget for the current year.

Wage Disbursal Delays

Delayed wage disbursal remains a serious concern for poor rural workers who rely on MGNREGA for livelihood support. The AIAWU's Tamil Nadu unit has held multiple protests against the BJP-led Union Government, citing delayed payments of four to five months in several districts, which has forced workers to borrow from moneylenders.

Additionally, work under the scheme for the 2025–26 fiscal year has not begun in many districts of Tamil Nadu due to a lack of funds. The AIAWU has called on both the State and Union Governments to resume work immediately and ensure timely payment of wages to address rural distress.

Demand to Increase Working Days

The Act mandates a minimum of 100 days of work annually for eligible rural households. However, the AIAWU is demanding an increase to 200 working days, along with fair wages aligned with prevailing daily wage rates in each state.

A parliamentary standing committee on rural development and panchayati raj has recommended raising the guaranteed days to at least 150 per year. The committee also suggested conducting a comprehensive survey to evaluate the scheme's effectiveness, focusing on worker satisfaction, wage delays, participation trends, and financial irregularities.

Constitute Welfare Board in Tamil Nadu

On May 11, three women workers from Tiruvannamalai district tragically lost their lives, and eight others were injured when a tree branch fell on them during MGNREGA work. The AIAWU has demanded Rs 10 lakh compensation from both the state and union governments for each of the deceased workers’ families.

In a statement, the union criticized the Tamil Nadu government for failing to provide basic amenities such as drinking water, resting shelters, and facilities for children at MGNREGA work sites. It added that the lack of proper implementation and monitoring has led to avoidable tragedies.

The AIAWU also reiterated its demand for the formation of a dedicated welfare board for MGNREGA workers in Tamil Nadu, similar to the model adopted by the Left Democratic Front (LDF)-led Kerala government.