Two senior ministers are at loggerheads over filing of an appeal against a court order that compels the Centre to pay minimum wages to the MGNREGA workers. Apart from re-igniting the debate over statutory minimum wages and centrally decided price, the order forces the central government to pay about Rs 4,000 crore to workers under the rural job plan as arrears and R1,000 crore every year. According to sources, in a...

After being mired in controversies across the nation over multi-crore scams, the MGNREGA scheme hasn’t quite made headway in Bulandshahr district’s Anupshahr yet, say Bhamati Sivapalan and Yamini Deenadayalan “MGNREGA is a flop in Uttar Pradesh,” extended NGO worker Manish Sharma, as small talk, at the block development office of Anupshahr in the Bulandshahr district of Uttar Pradesh. Despite having been in force since 2005, the Mahatma Gandhi National Rural Employment...

-The Hindu Business Line   The Rural Development Minister, Mr Jairam Ramesh's proposal to amend the law on minimum wages to permit a lower wage for employment under the rural jobs scheme (Mahatma Gandhi National Rural Employment Guarantee Act or MGNREGA) makes practical sense. The Karnataka High Court ruled recently that wages set under MGNREGA cannot be independent of the MWA. Effectively, it means there can be no such thing as an...

The Centre may create a new category under the Minimum Wages Act, 1948 for resolving the conflict with the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 in implementaing wages rates. At present, wages under MGNREGA is linked to the consumer price index. However, it is less than the notified minimum wages for agricultural labour in six states-Andhra Pradesh, Karnataka, Kerala, Goa, Mizoram and Rajasthan. The rural development ministry has...

The political advantage enjoyed by the Congress for bringing the rural job scheme is under threat with five of its states underpaying workers, a revelation that has prompted the leadership against challenging a court order seeking parity between MGNREGA wages and minimum wages in a state.  The Karnataka high court recently ruled that wages under MGNREGA should at least be equal to the notified farm wages. The ruling would result in...