Ahead of the general elections, the Centre has notified a 3-10 per cent increase in the wage rates for MGNREGA workers for the financial year 2024-25. The new wage rates will come into effect from April 1,2024.

While Goa (10.56 per cent) and Karnataka (10.4 per cent) have seen the highest percentage increase, wage rates in Uttar Pradesh and Uttarakhand are set to see the lowest increase at 3 per cent for FY’24-25. Andhra Pradesh (10.29%), Telangana (10.29%) and Chattisgarh (9.95%) saw robust percentage increases.

The average MGNREGA wage increase across India is ₹28 per day . The average wage for 2024-25 will be ₹289 as against ₹261 for FY’23-24. 

Currently, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) wages are decided based on changes in the CPI-AL (Consumer Price Index- Agriculture Labor), which reflects inflation in rural areas. 

Rural Development Ministry, which administers the MGNREGA scheme, had recently obtained the Election Commission’s permission to notify the revised wage rates as the model code of conduct is already in force across the country for the upcoming General Elections.

In absolute terms, Haryana will get the maximum wage of ₹ 374 per day. The lowest has been fixed for Arunachal Pradesh and Nagaland at ₹ 234 per day. 

Last year, the Rural Development Ministry announced the MGNREGA wage increase for 2023-24 on March 24. The wage increase ranged from 2-10 per cent.

Earlier this year, the Parliamentary Standing Committee on Rural Development highlighted that the wages were inadequate and not in consonance with the rising cost of living. It also flagged the high range of variation in MGNREGA wages across States. 

It had asked the Rural Development Ministry to explore the feasibility of revising the base year and base rate of the MGNREGA wage. Currently, the base year for MGNREGA wage calculation is 2009-10, and this was seen as obsolete. 

Besides the necessity to increase wages, the Parliamentary Panel had also flagged the delay in dispensing the wages.

The Centre had, in the Union Budget 2024-25, allocated ₹86,000 crore for MGNREGA. This was at par with the revised estimate for MGNREGA in the ongoing financial year 2023-24. 

Besides the Centre’s notified wage rates, States can also provide a wage rate over and above such level for the beneficiaries.

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