New Delhi: The central government has announced a three to 10 percent increase in wage rate for unskilled workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the financial year 2024-25.
Though this is a routine exercise, the rural development ministry had to take permission from the Election Commission of India (ECI) to notify the new wage rate since the code of conduct is in place for the upcoming general elections. The new wages will come into force from 1 April.
The wage rates are notified annually as mandated in the Mahatma Gandhi National Rural Employment Guarantee Act of 2005 (MGNREGA). It is the amount to be paid to unskilled workers per day for the work done under the scheme.
As per the gazette notification issued Wednesday, Haryana and three gram panchayats of Sikkim have the highest wage rate (Rs 374 per day), and the lowest is in Arunachal Pradesh (Rs 234), preceded by Uttar Pradesh and Uttarakhand (Rs 237 per day).
BJP-ruled UP and Uttarakhand have seen the lowest hike in rates — of Rs 7 per day. Goa saw an increase of Rs 34 per day (from Rs 322 to Rs 356).
Andhra Pradesh, Karnataka, Chhattisgarh, Maharashtra, Tamil Nadu, Telangana, Madhya Pradesh, and Gujarat among others — which have a sizable number of active workers — have seen an increase of Rs 20 and above in daily wages.
In Rajasthan, Haryana, Punjab, and Bihar, the increase has been less than Rs 20. Rajasthan, for instance, saw a hike of 10.4 percent last year (from Rs 231 in 2022-23 to Rs 255 in 2023-24). But this year, there has only been a 4.3 percent increase in wage rate (from Rs 255 to Rs 266 per day).
Currently, there are close to 14.34 crore active workers under MGNREGS and the average per day rate for unskilled work is around Rs 235 per day, as per the rural development ministry.
There has been a demand from MGNREGA workers and activists to not only increase wages but also to ensure uniformity across the country. The issue of low wages was also pointed out by a Parliamentary panel in its recent report, which was tabled on 8 February, 2024.
The panel, headed by Dravida Munnetra Kazhagam (DMK) MP Kanimozhi, said, “One of the reasons for the dearth of MGNREGA workers to be engaged in the works under MGNREGA may be the insufficiency of the wage rates under MGNREGA. Workers would definitely engage themselves in such projects/works which could earn them a better remuneration.”
It recommended the rural development ministry “to take a considered view on the pertinent issue of suitable increase in the wage rates under MGNREGA and increase the wage rates at the earliest for benefitting MGNREGA beneficiaries in a befitting manner”.
Panel bats for uniformity
Last year, the Parliamentary panel had stressed on the need to address the issue of disparity in wages under MGNREGA. It had asked the ministry to explore the possibility of making wages uniform across the country.
In its report tabled in the Parliament in July last year, the panel expressed concern over the disparity in wages across the country. It said, “Disparity of wages and non-increase in wages commensurately with inflation is perhaps the most discouraging aspect for labourers to undertake MGNREGA works.”
In 2023-24, the lowest wages were in Chhattisgarh and Madhya Pradesh at Rs 221, while the highest was in Haryana at Rs 357, the ministry website said.
(Edited by Tikli Basu)
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