Lok Sabha Election 2024: MCC in force, ECI allows Centre to revise MGNREGA wages for FY 24-25 

The Ministry of Rural Development has been authorised by the Election Commission of India to announce revised wages under the Mahatma Gandhi National Rural Employment Guarantee Act for the upcoming financial year, starting from April 1, 2024.

It has been reported that the ministry responsible for implementing the MGNREGS sought permission from the Election Commission following the initiation of the Model Code of Conduct on March 16, coinciding with the announcement of the schedule for the Lok Sabha elections.

It is understood that the poll panel granted approval to the ministry to announce the revised wages, a process expected to be completed within a week.

The Centre determines state-wise wage rates for MGNREGS workers following sub-section (1) of Section 6 of the MGNREGA, 2005. These rates are adjusted based on fluctuations in the CPI-AL (Consumer Price Index-Agriculture Labourer), reflecting changes in rural inflation.

All states have experienced an increase in MGNREGS wages for the current financial year, with the overall rise ranging between 5-6 percent. Last year, the government announced the MGNREGS wage rates for the financial year 2023-24 on March 25.

In the previous month, a parliamentary standing committee recommended that the Centre should carefully assess the matter and make a thoughtful decision regarding the appropriate increase in wage rates under MGNREGA.

“The need for a suitable increase in wages under MGNREGA has been acknowledged and advocated by various stakeholders, as well as emphasized in previous reports by this Committee. Therefore, the Committee, chaired by DMK member Kanimozhi Karunanidhi, reiterates its recommendation that the Department of Rural Development should carefully deliberate on the significant issue of enhancing wage rates under MGNREGA. It urges prompt action to increase the wage rates for the benefit of MGNREGA beneficiaries in a fitting manner,” stated the committee in its report titled ‘Rural Employment Through Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) – An Insight into Wage Rates and other matters relating thereto’.

Under MGNREGA, each rural household, with an adult member willing to engage in unskilled manual labor, is entitled to receive a minimum of 100 days of wage employment within a financial year.

In certain instances, the government permits an additional 50 days of wage employment, extending beyond the mandated 100 days.

In the ongoing financial year, approximately six crore rural households have participated in MGNREGS activities as of March 20. Among them, 35.5 lakh households have fulfilled their entitlement of 100 days of work.