Introduction: The Ministry of Rural Development (MoRD) has announced an increase in the wage rates for workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the financial year 2024-25. This revision will see wage increases ranging from 3% to over 10% depending on the state.
Details of the Wage Increase:
- Effective Date: The new wages will be applicable from April 1, 2024.
- Range of Increase: Workers will see an increase in daily wages from Rs 7 to Rs 26.
- Percentage Increase: The average wage rate across India will rise by approximately 7%, from Rs 267.32 to Rs 285.47 per day.
- State-Specific Hikes:
- Goa records the highest increase at 10.56%.
- Karnataka, Andhra Pradesh, and Telangana also see significant hikes of over 10%.
- Uttar Pradesh and Uttarakhand have the lowest increase at 3.04% each.
- Kerala and Lakshadweep are other regions with lower hikes, below 4%.
Highest and Lowest Wages by State:
- Haryana offers the highest NREGS wage at Rs 374 per day.
- Arunachal Pradesh and Nagaland have the lowest at Rs 234 per day.
Wage Calculation and Budget Allocation:
- Basis for Wage Adjustment: Wage rates are adjusted according to the Consumer Price Index for Agricultural Labor (CPI-AL), which reflects rural inflation trends.
- Budget for MGNREGA: The Union Budget for 2024-25 has earmarked Rs 86,000 crore for MGNREGA, maintaining the allocation at the same level as the revised estimate for 2023-24.
- State Contributions: States have the option to set higher wage rates than those notified by the Centre.
Additional Notes:
- Employment Days: In FY23-24, the average employment days provided per household was 51 days, falling significantly short of the statutory provision of 100 days.
Conclusion: This wage revision under MGNREGA for FY24-25 aims to better reflect the current inflationary pressures and cost of living increases faced by rural laborers. The adjustments are part of ongoing efforts to ensure fair compensation for beneficiaries under India’s largest public employment program, which plays a crucial role in rural development and poverty alleviation.
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