Supreme Court directs Bihar and Jharkhand to pay ₹1 lakh each to daily-wage workers of defunct corporations
29 September 2026
A Bench of Justice Vikram Nath and Justice Sandeep Mehta ruled in Bihar State Ardh Sarkari Arajpati Karamchari Maha Sangh v. State of Bihar (2026 INSC 1061). Workers of five corporations affected by the Bihar Reorganisation Act, 2000 had waited for dues for decades. The Court directed ₹1,00,000 to each daily-wage worker, with 12% annual interest on delayed EPF dues and 6% on other dues. Of 2,274 verified employees, 2,074 had received payments. The States must publish details within four weeks and pay within three months, and untraced workers get 12 months to claim.
Compensation per worker:
₹1,00,000
Interest on delayed EPF dues:
12% per annum
Verified employees:
2,274
Why it matters for exams: Labour rights and State reorganisation disputes link polity, economy and law.
Kerala PSCUPSC