Context

The Union government  recently notified the revised wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Revised MGNREGA Wages Rates

• MGNREGA Rate in Uttar Pradesh: The hike ranged from ₹7 in Uttar Pradesh (2023- ₹230 – to 2024 rate of ₹237) 
• MGNREGA Rate in Goa: ₹34 hike in Goa (2023 wages ₹322 to 2024 wages ₹356)
• Highest and Lowest Wage Rate: Haryana continues to offer the best wages at ₹374 per day, Uttar Pradesh at ₹237 has one of the lowest wages

About Wage Rates for MGNREGS Workers

• Section 6 of the MGNREGA, 2005: The Ministry of Rural Development establishes state-specific salary rates for MGNREGS workers under sub-section (1) of Section 6 of the MGNREGA, 2005.
• Fixing of Wage Rates: Wage rates are set in response to changes in the CPI-AL (Consumer Price Index-Agriculture Labourer), which measures inflation in rural areas.
  • The Labour Bureau publishes the CPI-(AL), which has 2010-11 as its base year.  
• Determination of MGNREGA Wage rates: MGNREGA wages are decided based on the amount of work accomplished, using a piece-rate method.
• Payment basis: The real payment is based on the worker’s productivity, which is calculated using each state’s particular Schedule of Rates. 
• Variation in Payments across states: These rates vary by state and serve as the foundation for computing pay for MGNREGA participants.

About Mahatma Gandhi National Rural Employment Guarantee Act

• Introduced Year: 2005.
• Nodal ministry: Ministry of Rural Development (MRD).
• Mandate: To Provide at least 100 days of guaranteed employment each fiscal year to every rural household whose adult members agree to conduct unskilled manual labour at the statutory minimum wage.