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In a move aimed at bolstering support ahead of the Lok Sabha elections, the Central government has announced a revision in wage rates for unskilled manual workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the financial year 2024-2025. The hike, ranging from 3 to 10 per cent in nominal terms, is poised to enhance the livelihoods of MGNREGA workers across various states.
Notification Details:
The Ministry of Rural Development has issued a notification, invoking sub-section (1) of section 6 of the MGNREGA 2005, to implement the new wage rates effective from April 1, 2024.
State-wise Analysis:
Notably, the revised wage rates exhibit varying degrees of increase across states, with Goa witnessing the highest surge at 10.6 per cent, while Uttar Pradesh and Uttarakhand experience a more modest rise of 3.04 per cent.
States such as Karnataka, Andhra Pradesh, and Telangana have recorded a hike exceeding 10 per cent, indicative of substantial improvements in wage levels for MGNREGA workers.
The upward revision in wage rates aims to mitigate the impact of inflation and ensure equitable compensation for labor-intensive work under MGNREGA.
About MGNREGA:
MGNREGA is a demand-driven wage employment scheme designed to provide livelihood security to rural households through guaranteed wage employment.
The scheme operates on the basis of a “Labour Budget” agreed upon by the Central government and individual states/union territories (UTs).
Allocation of funds is contingent upon the fulfillment of the agreed labor budget and the performance of states/UTs in executing the scheme effectively.
The government has allocated significant funds for MGNREGA in Budget Estimate 2023-24, with a further enhancement in the budgetary allocation in the 1st Supplementary Demand for Grant, reflecting its commitment to rural development and employment generation.
The Government of India has demonstrated its commitment to bolstering rural employment opportunities by significantly enhancing the budgetary allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in the fiscal year 2023-24. Originally earmarked at Rs. 60,000 crore in the Budget Estimate, the allocation has been substantially augmented to Rs. 74,524.29 crore in the 1st Supplementary Demand for Grant.
Impact and Implications:
The augmented wage rates aim to address inflationary pressures and ensure equitable compensation for labor-intensive work undertaken through MGNREGA.
The government’s proactive approach towards enhancing MGNREGA wage rates reflects its commitment to promoting rural livelihoods and fostering socio-economic development in rural areas.
Compensation Mechanism:
To address delays in wage payments, MGNREGA provides for compensation at the rate of 0.05% of unpaid wages per day of delay beyond the sixteenth day of the muster roll’s closure.
The government’s decision to increase MGNREGA wage rates underscores its commitment to promoting rural employment and enhancing the economic well-being of unskilled workers across the country. As the Lok Sabha elections draw nearer, such measures are likely to resonate positively among rural communities, reaffirming the government’s support for grassroots development initiatives.
