MGNREGA: The Centre has announced a 3–10% increase in MGNREGA workers’ pay rates for the 2024–2025 fiscal year ahead of the general elections. The revised pay scales will take effect on April 1, 2024.
Regional Disparities in MGNREGA Wage Increases
Wage rates in Uttar Pradesh and Uttarakhand are expected to rise by the least amount, 3%, for FY’24–25, while Goa (10.56%) and Karnataka (10.4%) have experienced the most percentage increases. There were notable percentage rises in Andhra Pradesh (10.29%), Telangana (10.29%), and Chattisgarh (9.95%). In India, the average MGNREGA wage rise is ₹28 per day. ₹289 will be the average salary for 2024–25, compared to ₹261 for FY’23–24.
The Consumer Price Index-Agricultural Labour, or CPI-AL, is now used to determine wage adjustments for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA). This index represents inflation in rural areas.
Election Commission Delegates Wage Rate Authority
The Election Commission has granted authority to the Rural Development Ministry, which oversees the MGNREGA scheme, to announce the updated wage rates. This is because the model code of conduct for the 2018 General Elections is already in effect nationwide.
The highest salary that Haryana would receive per day is ₹ 374. Arunachal Pradesh and Nagaland have been set at the lowest, at ₹ 234 per day. On March 24, of the previous year, the Rural Development Ministry declared the MGNREGA wage rise for 2023–2024. The pay increase was between two and ten percent.
Parliamentary Concerns on MGNREGA Wages
The Parliamentary Standing Committee on Rural Development brought attention to the fact that the wages were insufficient and out of line with the growing expense of living earlier this year. Additionally, it noted how much MGNREGA earnings vary among States.
It had requested that the Ministry of Rural Development investigate whether it would be possible to change the MGNREGA wage’s base year and base rate. The base year used to calculate MGNREGA wages is now 2009–2010, which was deemed to be out of date.
Parliamentary Panel Raises Concerns Over Wage Disbursement Delay
In addition to highlighting the need for pay increases, the Parliamentary Panel also brought attention to the wage disbursement delay. The Union Budget 2024–25 included ₹86,000 crore from the Centre for MGNREGA. This was comparable to the updated MGNREGA forecast for the current fiscal year 2023–2024. In addition to the salary rates announced by the Centre, States may offer their beneficiaries a wage rate that is higher.
