When Manmohan Singh wrote to the Sonia Gandhi-led NAC on December 31, rejecting its recommendations to increase minimum wages paid under the NREGS, he had referred to a “consensual view” that emerged from ministries involved. Gandhi had written to the PM in November that workers under NREGS were being paid less than the minimum wage in some states. “This is a totally unacceptable situation and needs to be corrected at...
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NREGA scheme: PM snubs Sonia Gandhi?
Days after rejecting the National Advisory Council (NAC) demand for matching the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGA) with minimum wages, the Government has now agreed to link the wages with inflation. This would mean a 17 per cent to 30 per cent increase in the present wage of Rs 100 per day. The National Advisory Council headed by Congress President Sonia Gandhi had wanted the wages to match minimum...
More »A Notional Advisory Council? by Jean Drèze
The National Advisory Council's recommendations on the National Food Security Bill are in danger of being brushed aside. It is the fate of most advisory committees that the government accepts whatever advice suits its purposes and ignores the rest. The first version of the National Advisory Council (NAC-1) managed to avoid that fate to some extent, due to favourable circumstances. NAC-1 was able to persuade the government to enact the...
More »NREGA Wages to be tied to inflation
Prime Minister Manmohan Singh has asked the rural development ministry to develop an index for fixing and revising wages under rural job scheme NREGA. The move follows a letter from Sonia Gandhi requesting Singh to find a way to ensure workers under the scheme are paid the minimum wages across the country. The minimum wages in several states, such as Rajasthan, Andhra Pradesh, Chhattisgarh, Jharkhand, Bihar and Karnataka, are now higher than...
More »NREGA Wages to reflect rising costs
The government has firmed up an indexing system of minimum wages for various categories of labour to match the inflation after Congress President Sonia Gandhi asked Prime Minister Manmohan Singh to ensure that labourers are paid the minimum wages. The Rural Development Ministry is soon expected to issue a notification detailing the payment of minimum wages to various categories of workers, like industrial labourer or agricultural labourer, in tune with inflation,...
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