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

Atul K. Tiwari*

In pursuance of its commitment towards the welfare of the rural poor , the Government hasenhanced the wages underMahatma 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 labourhe 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

Consumer Price Index for the agricultural labourwaiting 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 thefinancial 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.