Employment guarantee scheme: Kerala govt’s first-of-its-kind welfare fund board fails to take off

Thiruvananthapuram: Kerala's welfare fund board for employment guarantee workers, the first such initiative in the country, has failed to gain momentum since its launch, with enrolment remaining far below expectations.

The scheme was introduced with a monthly contribution of ₹50 and aimed to enrol at least six lakh workers. However, in the three years since it began operations, only 17,742 workers have applied for membership.

Of these, 14,415 applications have been approved, while only 8,345 members have paid their contributions.

The welfare fund board was set up by the previous Left government to provide benefits to workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and the Ayyankali Urban Employment Guarantee Scheme (AUEGS). Despite enrolment drives conducted across districts, the board has struggled to attract members.

The poor response is attributed to several factors, with uncertainty over pension eligibility emerging as the biggest concern among workers.

Many fear that joining the welfare fund could affect the social welfare pension they currently receive, as they are eligible for only one pension. Uncertainty over the future of the employment guarantee schemes has also discouraged enrolment.

Workers are also concerned that changes in the nature of employment under the schemes could eventually reduce job opportunities.

Earlier, stricter conditions imposed under MGNREGS prompted many workers to leave the programme. Although the attendance system was later changed from MGNREGS to the VB-G RAM-G platform, worker participation has remained low. The daily wage was recently increased to ₹401. However, workers continue to describe the scheme as unattractive despite the revision.

Members of the welfare fund are entitled to a range of benefits, including maternity assistance of ₹7,500 on two occasions, medical assistance of up to ₹10,000, a pension after the age of 60 for those who have made the required contributions, marriage assistance for women members and members' daughters, financial assistance for the treatment of serious illnesses, and support towards funeral expenses in the event of the death of a member or a family member.

However, the pension amount has not yet been finalised.

The future of the welfare fund board is expected to depend on the approach adopted by the new government.

Kerala had around 20.85 lakh active job card holders and 24.85 lakh employment guarantee workers across its 941 gram panchayats a year ago. Around two lakh workers have since exited the employment guarantee programme.

The younger generation has also shown little interest in joining employment guarantee work.

Unlike MGNREGS, the AUEGS is funded entirely by the Kerala government.