States may set it higher, not lower; planned link to cost of living. The Minimum Wages Act will be amended to enact a new centrally set minimum, in the wake of the National Advisory Council's suggestion on asymmetries in this regard between states on payments for work done on schemes under the National Rural Employment Guarantee Act (NREGA). The Union labour ministry has begun consultations on the proposed change and on making...

Bottlenecks at every stage in the implementation of MGNREGA in Atra village in Chhattisgarh are making the villagers disillusioned. “If payment is unreliable, the poorest and the most vulnerable opt out of the system...” On a rainy day in September, Bir Singh Malekar, 45, rues his decision to stay back in Atra village in Chhattisgarh's Rajnandgaon district this summer, instead of leaving in search of work. “I usually go to Chennai between...

The Union Rural Development Ministry appears to have painted itself into a corner on the issue of paying minimum wages to workers employed under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS). The ministry has so far insisted that it is not obliged to pay minimum wages to MNREGS workers. This despite an Andhra Pradesh High Court order requiring the government to pay them statutory minimum wages. In a further...

It is the latest face off between Sonia Gandhi led National Advisory Council and Manmohan Singh led UPA government. The Council and the Rural Development Ministry have come to blows over what should be the minimum wage under the National Rural Employment Guarantee Scheme. The NAC's resolution that endorses the urgent need for increasing wages is in direct conflict with the position taken by the Rural Developemnt Ministry. At the heart...

Can the government break its own laws? That seems to be the case when it comes to minimum wages in the National Rural Employment Guarantee Scheme (NREGS), which makes the government the employer of the world’s largest workforce of close to 35 million job-card holders. In 19 states, the workers are getting less than the minimum wages in their areas, with the rural development ministry and the labour ministry looking the...