Mahatma Gandhi NREGA Wage Rates Hiked by 17-30 Percent in India - New Wages Higher than Existing Rates in many States

By Atul K. Tiwari
Director( M & C), Press Information Bureau, New Delhi                

New Delhi, Feb 23, 2011 (Washington Bangla Radio / PIB-India) In pursuance of its commitment towards the welfare of the rural poor , the Government has  enhanced the wages under  Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This will result in 17-30% enhancement of wages under the premier flagship program of the Government across the country. The move is likely to benefit more than 5 crore beneficiaries under MGNREGA across the country. The wage rates have been hiked 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 1st, 2009. As per the amended notification issued by the Ministry Of Rural Development the new MGNREGA wage rates will come into effect from January 1, 2011 or the date of actual payment of the revised rate, whichever is later.

In fact the new wage rates are higher than the prevailing wages rates under MGNREGA at present in many states as follows :

S.N. Name of State Present wage rate in Rs. Per day Revised wage rate in
Rs. Per day
1 Assam Rs. 100.00 Rs. 130.00
2 Andhra Pradesh Rs. 100.00 Rs. 121.00
3 Arunachal Pradesh            Rs.80.00                                           Rs.80.00 Area-1 (Rs. 118.00)
Area-1I (Rs. 118.00)
4 Bihar Rs.100.00 Rs. 120.00
5 Gujarat Rs.100.00 Rs. 124.00
6 Haryana Rs.141.02 Rs. 179.00
7 Himachal Pradesh Non-scheduled Areas-Rs.100.00
Scheduled Areas- Rs.125.00
Non-scheduled Areas-                    Rs. 120.00
Scheduled Areas-  Rs. 150.00
8 Jammu & Kashmir Rs.100.00 Rs. 121.00
9 Karnataka Rs.100.00 Rs. 125.00
10 Kerala Rs.125.00 Rs. 150.00
11 Madhya Pradesh Rs.100.00 Rs. 122.00
12 Maharashtra Rs.100 Rs. 127.00
13 Manipur Rs.81.40 Rs. 126.00
14 Meghalaya Rs.100.00 Rs. 117.00
15 Mizoram Rs.110.00 Rs. 129.00
16 Nagaland Rs.100.00 Rs. 118.00
17 Orissa Rs.90.00 Rs. 125.00
18 Punjab    
18 (a) Hoshiarpur Rs.100.00 Rs. 124.00
18 (b) Jalandhar Rs.100.00 Rs. 124.00
18 (c) Nawanshar Rs.100.00 Rs. 124.00
18 (d) Amritsar Rs.105.00 Rs. 130.00
19 Rajasthan Rs.100.00 Rs. 119.00
20 Sikkim Rs.100.00 Rs. 118.00
21 Tamil Nadu Rs.100.00 Rs. 119.00
22 Tripura Rs.100.00 Rs. 118.00
23 Uttar Pradesh Rs.100.00 Rs. 120.00
24 West Bengal Rs.100.00 Rs. 130.00
25 Chhatisgarh Rs.100.00 Rs. 122.00
26 Jharkhand Rs.99.00 Rs. 120.00
27 Uttarkhand Rs.100.00 Rs. 120.00
28 Goa Rs.110.00 Rs. 138.00
29 Andaman & Nicobar
Andaman District
Nicobar District
Rs. 170.00
Rs. 181.00
30 Dadra & Nagar Haveli Rs.108.20 Rs. 138.00
31 Daman & Diu Rs.102.00 Rs. 126.00
32 Lakshadweep Rs.115.00 Rs. 138.00
33 Puducherry Rs.100.00 Rs. 119.00
34 Chandigarh Rs.140.00 Rs. 174.00

The decision to hike wages under MGNREGA comes in the wake of recommendations of National Advisory Council and consultations with the different Ministries. Linking the wages to Consumer Price Index for the agricultural labour will result in annual revision of the wage rates. Meanwhile, the Government is also waiting for the report of the Pranob Sen Committee constituted to deliberate upon a separate index for MGNREGA. The recommendations once submitted by this Committee will also be considered by the Government. Under MGNREGA in the  financial year 2010-11, upto December, 4.10 crore households have been provided employment and 145 crore persondays have been generated. The average wage earned has risen from Rs 65 per person day in 2006 to Rs 100 by 2011. Women constitute 50% while Scheduled Castes account for 23 %, and Scheduled tribes comprise 17% of those working in Mahatma Gandhi NREGA in 2010-11.  Over 10 crore accounts of Mahatma Gandhi NREGA beneficiaries were opened in post offices/banks contributing to financial inclusion. Among the works taken up under MGNREGA, water conservation, irrigation and land development account for over 75% of work taken up in 2010-11 till Dec.2010.

The decision to hike wages under Mahatma Gandhi NREGA is a reflection of the Government’s commitment to provide adequate livelihood security to the poor, down trodden, and members of Scheduled Castes and Scheduled Tribes. This hike will go a long way towards meeting the requirements of the needy in the rural areas en route to achieve the goal of inclusive growth and development across the country.

(PIB Features)