States to pay entire compensation by July 31

Centre has come down heavily on states asking them to pay the entire compensation to workers arising out of delay in wages by July 31 under the employment guarantee scheme, in the absence of which states will not be allowed to apply for further funds under the scheme from the Centre. At present, 25% of the payments amounting to Rs 2,700 crore are delayed beyond the stipulated 15 days. A fraction of payments, about Rs125 crore, have been delayed for over 90 days. Ministry of Rural Development had introduced the penal system of monetary compensation for delay in wages under the Mahatma Gandhi National Rural Employment Guarantee Act in January this year and till date the cumulative compensation stands at Rs 90.6 crore.

Read the Economic Times news report here.