The United Progressive Alliance government's decision to challenge the Karnataka High Court's ruling on payment of minimum wages to workers under the Mahatma Gandhi National Rural Employment Guarantee Act came under attack from the Central Employment Guarantee Council (CEGC), the body that governs the programme. And Union Minister for Rural Development Jairam Ramesh has warned Prime Minister Manmohan Singh that the “atmospherics associated with filing of a special leave petition [in...

Fixing of minimum wages in the States and under the Mahatma Gandhi National Rural Employment Guarantee Scheme is set to become a poll issue, at least in Uttar Pradesh. Even as the Ministry of Rural Development is hurrying to revise the wage rate under the MGNREGS next week, its officials are apprehensive that Uttar Pradesh too might revise its minimum farm wages in a couple of days. The officials are keenly watching...

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 Centre is likely to pay minimum wages to workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in compliance with the recent Karnataka High Court ruling upholding the supremacy of the Minimum Wages Act (MWA) over the MGNREGA. Union Minister of Rural Development Jairam Ramesh has taken a decision favouring payment of minimum wages for agricultural workers as notified by the States as MGNREGA wages. He told The...

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...