MGNREGA Workdays Drop Post Centre’s Mandatory Aadhaar E-KYC

Visakhapatnam: The workdays under MGNREGA in Andhra Pradesh have seen a significant drop following mandatory Aadhaar-based e-KYC.

According to a Libtech India study, the percentage of work days provided under MGNREGA in AP from April to September 2025 fell throughout the state by 13.6 per cent, a steeper decline than the national average of 10.4 per cent. Household participation dropped by nearly 5 per cent, from 42.79 lakh to 40.74 lakh.

The impact has been disproportionately felt by scheduled castes and scheduled tribes, whose work days declined by 18.7 per cent and 17 per cent respectively, compared to 11.3 per cent among other social groups.

LibTech, a group comprising engineers, social workers and social scientists dedicated to enhancing the delivery of public services in India, culled this data from the official MGNREGA Management Information System.

According to the organisation, this contraction in employment has resulted in a tangible loss of household income. The average earnings per MGNREGA household fell from Rs 10,695 to Rs 10,178, despite a modest increase in the notified wage rate from Rs 300 to Rs 307. Throughout the state, the reduction in total earnings of households comes to Rs 435 crore. This decline is notable given the state's historically strong record in implementing the rural employment scheme.

LibTech says this reveals the risks of digital exclusion posed by Aadhaar-based e-KYC mandate.

District-level data reveals that NTR district recorded the most severe decline, with a 44.7 per cent drop in workdays, followed by Chittoor at 31.3 per cent. Only three districts did not show this trend. Nellore and Visakhapatnam showed modest increases of 4.8 per cent and 4.1 per cent respectively, and Palnadu remained nearly stable.

The LibTech report has raised the alarm of the Aadhaar e-KYC requirement creating digital barriers. Nearly 38 lakh registered workers in Andhra Pradesh are yet to complete e-KYC. Among those who actively seek work, over 21 lakh remain unverified.

This digital bottleneck is attributed to seasonal migration, technical failures and poor connectivity in rural areas.

LibTech India observes that the push for mandatory Aadhaar-based e-KYC, though intended to eliminate fake beneficiaries, is instead excluding genuine workers from accessing their legal entitlements.

As such, LibTech has requested the Andhra Pradesh government to formally request the centre to suspend the mandatory e-KYC requirement. It has further recommended that the state hold consultations involving worker groups, civil society organisations, researchers, and central authorities to ensure that ensuring accountability does not come at the cost of exclusion.