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LATEST NEWS UPDATES | State to seek hike in wages of job guarantee scheme by NJ Nair

State to seek hike in wages of job guarantee scheme by NJ Nair

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published Published on Jan 8, 2011   modified Modified on Jan 8, 2011

Government planning to move court for Rs.200 as wage

The State government is planning to move the court seeking to enhance the minimum wage being given to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) beneficiaries from Rs.125 to Rs.200.

Official sources told The Hindu here that this option was being explored in the wake of Prime Minister Manmohan Singh's decision to link wages with the Consumer Price Index. Consequent to the decision, the beneficiaries of the scheme would be getting only a nominal hike of Rs.25 as their wages would go up from Rs.125 to Rs.150 per day.

National Advisory Council chairperson Sonia Gandhi had earlier recommended to the Centre to revise the statutory minimum wages.

The current revision was felt to be inadequate. On revising the minimum wages from Rs.140 to Rs.200 in August 2009, the State government had been reiterating its demand for a corresponding increase in the wage rate for the beneficiaries of the scheme, but to no avail, according to the sources. The alleged unresponsiveness of the Centre to the demand for a revision had compelled the government to approach the court.

The Minimum Wages Act entailed a statutory revision of the wage rate once in five years. Thus, after the revision in 2003, another one was due in 2008; it was finalised in 2009 and fixed at Rs.200.

Though the MGNREG Act specified that the statutory minimum wage prevalent in each State should be given to the beneficiaries, it also had another provision, giving the Centre powers to fix its own rate. Thus, the Centre has fixed the minimum wage at Rs.125.

The urban employment guarantee scheme launched by the State government had been modelled upon the Central government scheme and now it had been decided to give Rs.125 to those enrolling in the scheme. A hike in the Central scheme would also work to the advantage of the beneficiaries of the urban employment scheme.

But the Centre was unlikely to accede to the demand. Earlier requests were rejected

The Hindu, 8 January, 2011, http://www.thehindu.com/todays-paper/article1064817.ece


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