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LATEST NEWS UPDATES | NREGA workers get lowest wage hike ever, Re 1 in some states -Shalini Nair

NREGA workers get lowest wage hike ever, Re 1 in some states -Shalini Nair

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published Published on Apr 28, 2017   modified Modified on Apr 28, 2017
-The Indian Express

In some states like Assam, Bihar, Jharkhand, Uttar Pradesh and Uttarakhand, the increase in daily wages under MGNREGA from April 1 is just Re 1.

IN THE lowest wage hike under the Mahatma Gandhi National Rural Employment Scheme, the Centre has increased wages by an average of just 2.7 per cent this financial year.

In some states like Assam, Bihar, Jharkhand, Uttar Pradesh and Uttarakhand, the increase in daily wages under MGNREGA from April 1 is just Re 1. It is Rs 2 in drought-affected Tamil Nadu and Odisha, and Rs 3 in Andhra Pradesh and Telangana.

After the revision, the states with the lowest wages are Jharkhand and Bihar, where workers will now get Rs 168 (up from Rs 167) per day. Haryana has the highest wages, up from Rs 259 last year to Rs 277.

Last financial year, the overall wage increase was slightly higher at 5.7 per cent.

Earlier, the finance ministry rejected the recommendations of an expert committee set up by the rural development ministry, which sought a fair revision of MGNREGA wages to bring them on par with the minimum wages paid to unskilled agricultural workers in the states.

“This ministry is of the considered opinion that the proposal for change in the base wage rate is not advisable at this stage,” the finance ministry said in its reply.

In its report, the seven-member expert committee — headed by S Mahendra Dev, Vice-Chancellor of Indira Gandhi Institute of Development Research — made two essential recommendations: the baseline for MGNREGA indexation should be the current minimum wage fixed by the state for unskilled agricultural workers; the Consumer Price Index for Rural (CPI-Rural), which reflects the current consumption pattern of rural households, should be the basis for revising MGNREGA wage rates, and not CPI for Agricultural Labourers, which is based on the consumption pattern of 1983.

But the finance ministry asked the rural development ministry to “undertake other steps to streamline the implementation of MGNREGA”, such as swift approval of projects, social audit and inventory of assets created. Moreover, to understand the “financial implications” of the report’s recommendations, the ministry directed the rural development ministry to set up another committee.

A spokesperson for the finance ministry said the demand would have huge implications on the exchequer. “Moreover, nowhere does the MGNREGA legislation mandate that minimum wages have to be paid; the government can fix the wage rate. Also, if the MGNREGA wages are increased steeply, people will move towards MGNREGA and there won’t be enough labourers willing to do agricultural work,” said the official.

“As per the finance ministry’s directions, we have constituted another committee under Additional Secretary Nagesh Singh. The panel will hold its first meeting next month,” said an official of the rural development ministry.

As a result of the growing divergence between MGNREGA wages notified by the Centre and the minimum wage as revised by the states, MGNREGA wages are way below the state’s minimum agricultural wage in over half the states. In several others, it is only marginally higher.

For instance, the minimum daily wage as well as the MGNREGA wage was Rs 120 in Bihar in 2011. Today, the minimum wage in the state has increased to Rs 232 per day, while MGNREGA wage is only Rs 168.

Please click here to read more.

The Indian Express, 27 April, 2017, http://indianexpress.com/article/india/nrega-workers-get-lowest-wage-hike-ever-re-1-in-some-states-4629829/


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