The question raises fundamental issues about the MGNREGA’s centralised template and poor delivery mechanism, but it is important to provide a legal basis to its wage structure to protect it against inflation. We need to remember that the way the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was originally conceived, wages were never meant to be equal to the minimum wages; they should have been lower. This is because the...
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NAC won't give up on food security proposals by Smita Gupta
One more effort to make government reconsider objections The Sonia Gandhi-headed National Advisory Council (NAC) has decided to stick to its recommendations made on the draft National Food Security Bill at its meeting on October 23 last, though these have been rejected by a government committee led by C. Rangarajan, who heads the Prime Minister's Economic Advisory Council. The committee was constituted by Prime Minister Manmohan Singh to examine the feasibility of...
More »An unending money illusion
The Union government recently indexed the wages of workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the consumer price index for agricultural labour (CPI-AL). The step, aimed at boosting the purchasing power of workers, came in the midst of a controversy over the government not linking wages under MGNREGS to the minimum wage under the Minimum Wages Act, 1948. The wage hike, ranging from 17-30%, is likely...
More »State to seek hike in wages of job guarantee scheme by NJ Nair
Government planning to move court for Rs.200 as wage The State government is planning to move the court seeking to enhance the minimum wage being given to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) beneficiaries from Rs.125 to Rs.200. Official sources told The Hindu here that this option was being explored in the wake of Prime Minister Manmohan Singh's decision to link wages with the consumer price index. Consequent to...
More »Rural job scheme minimum wage revised, risking inflation spiral by Ruhi Tewari & Asit Ranjan Mishra
In a move that brings relief to the rural workforce, but risks creating an inflation spiral, the government on Thursday revised the minimum wages paid for its flagship job guarantee scheme by linking them to the consumer price index for agricultural labour (CPI-AL) for each individual state. Such a price spiral, in case it actually emerges, could roil the electoral prospects of the Congress in the key contests to the state...
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