G.O.(Ms). No.01, Payment of compensation for delayed payment of wages, 2022

Purpose

Government Order G.O.(Ms). No.01 of the Rural Development and Panchayat Raj (CGS.1) Department, dated 4 January 2022, authorises the Commissioner of Rural Development and Panchayat Raj to pay Rs.12,83,242 in pending compensation for delayed wage payments under the Mahatma Gandhi National Rural Employment Guarantee Scheme. The pending compensation covers the financial years 2013-14 to 2020-21.

The approval was issued to comply with directions concerning compensation when scheme wages are delayed beyond the permitted period.

Who it affects

The payment approval affects workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme whose wages were not paid within 15 days from the closure of the Muster Roll. The document records that an eligible wage seeker is entitled to compensation for delay at the rate of 0.05% of unpaid wages.

The document contains no provision affecting land buyers, landowners, title records, registration, patta, planning permission or land use.

Key provisions

Government Order G.O.(Ms). No.01 provides that:

• Rs.12,83,242 is sanctioned as delayed wage compensation for the period from 2013-14 to 2020-21.
• The operative approval permits payment from State funds.
• The expenditure is assigned to a new account head for compensation for delayed wage payments under the Mahatma Gandhi National Rural Employment Guarantee Scheme.
• The expenditure is treated as a new service for which approval of the Legislature will be obtained.
• Pending legislative approval, the expenditure may initially be met through an advance from the contingency fund.
• The Director of Rural Development and Panchayat Raj must apply for contingency fund sanction and provide the explanatory note needed to include the expenditure in the Supplementary Estimates for 2021-2022.

Background and administration

Government Order G.O.(Ms). No.01 records that the Supreme Court of India directed the Government of India to ensure compensation was paid to workers whose wages were delayed beyond 15 days. Reported causes of earlier delays included funding constraints, a server problem and officials responsible for clearing Fund Transfer Orders being assigned election duty.

The Director of Rural Development and Panchayat Raj is designated as the estimating, reconciling and controlling authority for the new account head. The relevant Pay and Accounts Officer or Treasury Officer must open that account head in their records.