Ahead of the upcoming general elections, the Centre has officially notified a wage increase ranging from 3 to 10 per cent for workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the financial year 2024-25. The revised wage rates, effective from April 1, 2024, aim to address the rising cost of living and provide better remuneration for MGNREGA beneficiaries.
Goa and Karnataka witness the highest percentage hike at 10.56 and 10.4 per cent respectively, while Uttar Pradesh and Uttarakhand see the lowest increase at 3 per cent. Notable increases are observed in Andhra Pradesh (10.29%), Telangana (10.29%), and Chhattisgarh (9.95%).
The average wage hike across India stands at ₹28 per day, with the average wage for the financial year 2024-25 set at ₹289 compared to ₹261 in the previous fiscal year.
MGNREGA wages are determined based on changes in the Consumer Price Index- Agriculture Labor (CPI-AL), reflecting inflation in rural areas. The Rural Development Ministry, which oversees the MGNREGA scheme, obtained permission from the Election Commission to notify the revised wage rates amidst the ongoing model code of conduct for the upcoming General Elections.
In terms of absolute figures, Haryana will witness the highest daily wage of ₹374, while Arunachal Pradesh and Nagaland will have the lowest at ₹234.
Last year, the Rural Development Ministry announced a wage increase for the 2023-24 fiscal year, ranging from 2 to 10 per cent.
Earlier this year, the Parliamentary Standing Committee on Rural Development emphasized the inadequacy of wages and urged the Ministry to explore revising the base year and base rate of MGNREGA wages. Additionally, concerns were raised regarding delays in wage disbursement.
In the Union Budget 2024-25, the Centre allocated ₹86,000 crore for MGNREGA, maintaining consistency with the revised estimate for the ongoing fiscal year 2023-24.
Apart from the Centre’s notified wage rates, states have the flexibility to provide additional wage rates for MGNREGA beneficiaries, aiming to further enhance their livelihood opportunities.
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