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LATEST NEWS UPDATES | No hike in MGNREGA wages in 10 states -Shalini Nair

No hike in MGNREGA wages in 10 states -Shalini Nair

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published Published on Apr 2, 2018   modified Modified on Apr 2, 2018
-The Indian Express

In the worst wage revision in the history of the rural employment guarantee scheme, that started in 2006, MGNREGA workers in 10 states will get no hike in their wages for FY 2018-19, according to the revised wage rates issued by the Union government.

In the worst wage revision in the history of the rural employment guarantee scheme, that started in 2006, MGNREGA workers in 10 states will get no hike in their wages for FY 2018-19, according to the revised wage rates issued by the Union government on Saturday. The wages will remain unchanged in states like Jharkhand (Rs 168), Bihar (Rs 168), Uttarakhand (Rs 175) and Arunachal Pradesh (Rs 177) where the wages are already the lowest, while another five states are set to get a negligible wage hike of Rs 2 per day. These include Gujarat (Rs 194), Maharashtra (Rs 203) and Madhya Pradesh (Rs 174).

The average wage hike for FY 2018-19 is 2.9 per cent, only slightly higher than last year’s 2.7 per cent. However, unlike this year, in 2017-18 every state had an upward wage revision, even if marginal. In 2016-17, the average wage hike was 5.7 per cent for the scheme under the Mahatma Gandhi National Rural Employment Guarantee Act.

The poor wage hike this year is owing to the Finance Ministry’s recent rejection of the Ministry of Rural Development’s (MoRD) Nagesh Singh report that recommended indexing annual MGNREGA wage revision to CPI (Rural) instead of CPI (Agricultural Labourers). Last year, the Finance Ministry had turned down the expert Mahendra Dev panel report which had asked for bringing MGNREGA wages on a par with every state’s minimum agricultural wages and then indexing it to CPI (R) for annual revision. The MORD’s internal Nagesh Singh panel was set up on the Finance Ministry’s insistence to study the “financial implications” of the Mahendra Dev report. The Nagesh Singh panel said there was no need to bring MGNREGA wages on a par with minimum wages of states but agreed with the second recommendation of the Mahendra Dev report that the annual wage revision should be at least linked to CPI (R).

The MoRD usually issues its annual revised MGNREGA wage rates to all states by February end-March first week, but this year it was issued on March 31. According to sources, the delay was due to lack of response from the Finance Ministry to the Nagesh Singh report over the last few months before finally sending its rejection last week.

“The Finance Ministry has maintained that there is no reason why we should use CPI (R) to revise wages instead of CPI (AL), which has been in use all along,” said a ministry official. Accordingly, as per the CPI (AL) indexation, Tamil Nadu (Rs 224) has got the highest MGNREGA wage hike of Rs 19 per day while workers in Jharkhand and Bihar, with its unchanged wages, will received the lowest wages. Finance Ministry officials were unavailable for comment.

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The Indian Express, 1 April, 2018, http://indianexpress.com/article/india/no-hike-in-mgnrega-wages-in-10-states-5118873/


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