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  1. MGNREGA wage: Central government panel says states don’t need to hike pay to match minimum wage

MGNREGA wage: Central government panel says states don’t need to hike pay to match minimum wage

MGNREGA wage: A central government panel, which was looking into the revision of wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), has said that there is no need to maintain parity with minimum wages paid by various states.

By: | New Delhi | Updated: September 1, 2017 8:54 AM
MGNREGA wages, NREGA wages, minimum pay, NREGA minimum wages, states minimum wages, minimum wages MGNREGA wage: A central government panel, which was looking into the revision of wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), has said that there is no need to maintain parity with minimum wages paid by various states. (Representative image by IE)

MGNREGA wage: A central government panel, which was looking into the revision of wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), has said that there is no need to maintain parity with minimum wages paid by various states. The report, which was prepared by a Ministry of Rural Development (MoRD) committee, was submitted to Union Minister Narendra Singh Tomar, according to Indian Express report. It has been learnt that the rural employment guarantee scheme were last aligned to minimum wages in 2009. The panel had earlier found that MGNREGA wages were lower than the minimum agricultural wages paid in 17 states and Union Territories, the report says.

Earlier, the Centre was looking to rework the baseline on basis of which the remuneration is paid to beneficiaries under the employment guarantee scheme, PTI had reported on May 7. According to the Union rural development ministry data, the daily wage under the MNREGA has risen by just Re 1 in Assam, Bihar, Jharkhand, Uttarakhand and Uttar Pradesh, by Rs 2 in Odisha and by Rs 4 in West Bengal. Notably, MNREGA wages have been increased by 2.7 per cent this year compared to 5.7 per cent rise in the last financial year. The revised wages were applied from April 1.

According to PTI rreports, there is huge variation between MGNREGA wages notified by the Centre and the minimum wage of some states, and MGNREGA wages are way below the states minimum wages. To end this variation, the Centre is looking to rework or change the baseline for paying MNREGA wages, and a committee under Nagesh Singh, Additional Secretary in Department of Rural Development, was constituted for the same, the report said.

As of now, under the Mahatma Gandhi National Rural Employment Scheme (MNREGS) wages are paid on the basis of consumer price index (CPI) for agricultural labourers, which is based on the consumption pattern of 1983.

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