96,000 Anganwadi workers to receive ₹1,400 crore arrears:MP High Court retains gratuity benefits for all eligible workers, denies interest

In a major relief for nearly 96,000 Anganwadi workers and helpers in the state, the Madhya Pradesh High Court has directed the state government to pay around ₹1,400 crore in pending honorarium arrears for the period between 2019 and 2023. A Division Bench ordered the government to clear arrears for 48 months (four years) but set aside an earlier order directing payment of 6% interest on the delayed amount. The court, however, upheld the entitlement of Anganwadi workers and helpers to gratuity benefits. How the dispute began In 2018, the Central Government increased the honorarium of Anganwadi workers by ₹1,500. However, after a change in government in Madhya Pradesh in 2019, the state government reduced its own contribution toward the honorarium. As a result, workers and helpers did not receive the full revised amount. Instead of receiving the revised honorarium of ₹10,000 for Anganwadi workers and ₹7,000 for helpers, the actual payments were reduced to less than ₹10,000 for workers and around ₹5,500 for helpers. Challenging this decision, an Anganwadi workers’ organization approached the High Court. Single judge had ordered arrears with interest Earlier, a single judge of the High Court had declared the reduction in honorarium illegal and directed the state government to pay arrears for the period from June 2019 to June 2023 within 120 days, along with 6% annual interest. The single judge had also directed the government to extend gratuity benefits to Anganwadi workers and helpers. What the division bench ruled The Division Bench of Justices Anand Pathak and B.P. Sharma held that once the Central Government increased its contribution, the state government should not have reduced its own share, as doing so deprived Anganwadi workers of the intended financial benefit. The court directed the state to restore its earlier contribution and pay the pending arrears for the four-year period. Interest removed, gratuity benefit retained While upholding the arrears and gratuity benefits, the Division Bench removed the order granting 6% interest. The court observed that the original petition did not provide an adequate legal basis for seeking interest on the arrears. Financial impact on the state government Following the High Court’s ruling, nearly 96,000 Anganwadi workers and helpers will receive their pending arrears for the 48-month period between 2019 and 2023. However, no interest will be paid on the delayed amount. Had the interest order remained in force, the state’s total financial liability would have been approximately ₹1,700 crore. By setting aside the interest component, the government has received relief of about ₹300 crore, although it must still pay nearly ₹1,400 crore in arrears.