The wage rates for workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) have been increased. According to the rates revised by the Ministry of Rural Development with effect from January 1, 2011, the MNREGA wages will go up by 17-30 per cent.
This follows the UPA Chairperson Ms Sonia Gandhi pitching for a hike in wages for labourers and the recommendations of the National Advisory Council and consultations with the different Ministries.
“The move is likely to benefit more than 5 crore beneficiaries under MGNREGA across the country. The wage rates have been enhanced on the basis of Consumer Price Index for the agricultural labour calculated on the basis of Rs. 100 or the actual wage rate, whichever is higher as on April 1, 2009,” said the Rural Development Minister Mr C P Joshi. The Government will meet the additional expense of Rs 3,500 crore due to the wage revision between January and March, he said.
He said the earnings of a labourer following the wage hike were higher than the prevailing wage rates under MGNREGA at present in at least 20 states. “Each year as per the indexing the wages will be enhanced. After every five years the base of Rs 100 will be revised based on recommendations of the Pranob Sen Committee. This report is pending but we have still take this decision”, the Minister said.