After firefighting the controversy over poverty line cut-off, the Congress-led UPA government may find itself in trouble on the matter of NREGS wages. In a judgment late last month, the Karnataka High Court ruled that wages under the UPA’s flagship rural job guarantee scheme “shall not be” less than the minimum wages fixed by state governments under the Minimum Wages (MW) Act. The decision will re-open the tussle between Sonia Gandhi-led National...
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Can Centre fix NREGS wages in isolation? by M Rajshekhar
Sometime this month, Justice N Ramamohana Rao of the Andhra Pradesh High Court will deliver a verdict that will directly impact earnings of the 114 million people who work under the National Rural Employment Guarantee Scheme (NREGS), the Central government's work guarantee programme. The verdict will also indirectly impact earnings of the 400 million workers and labourers who toil in India's factories and fields for 'minimum wages'. The question Justice Rao...
More »Noted jurists express dismay at Prime Minister’s NREGA statement
Say there is no way the workers can be paid less than the minimum wages Open Statement on Prime Minister’s Assertion that the NREGA Wage Rate is ‘Delinked’ from the Minimum Wages Act We the undersigned are shocked at the Prime Minister’s statement in a letter to the Chairperson of the National Advisory Council that ‘statutorily the wage rate under NREGA is delinked and independent of the provisions of the Minimum...
More »Rural job plan turns 5, but wages need to grow more by Prasad Nichenametla
The Mahatma Gandhi National Rural Employment Guarantee Act, UPA’s flagship aam admi scheme, turns five on Wednesday. However, more than 30% of the rural India working under the right-to-work act would continue to receive wages below the guaranteed minimum as per the minimum wages act. On January 14, the ministry of rural development issued a notification revising the wage rates under the MNREGA from Rs 100 per day to between...
More »States to bear cost of aligning NREGA wages with minimum pay: Montek
The Planning Commission has said that states will have to bear the additional burden if the minimum wages notified by them are higher than that fixed by the Centre for work under the employment guarantee Act. In the case of rich "states that can afford very high minimum wages, the central government reimbursement will be limited", Planning Commission deputy chairman Montek Singh Ahluwalia told reporters. For a state where minimum wages are...
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