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MGNREGS Wage Revision: Parliamentary Panel Recommendations

15 March 20251 min read
GOVERNMENT SCHEMESMGNREGS WageRevision:Parliamentary PanelRecommendations15 March 2025safalsetu.com

Why in the news

A parliamentary committee pressed the government to raise MGNREGS wages to match the rising cost of living and voiced displeasure that earlier recommendations went unheeded.

Key recommendations

  • Revise wage rates in view of inflation.
  • Adopt a uniform wage rate across all States and UTs, since the scheme is centrally funded.
  • Rework the wage formula: the present link to the CPI for agricultural labourers does not reflect inflation well.
  • Release West Bengal’s rightful dues for eligible years, except the year under court dispute.
ItemFigure
Lowest wage₹234 (Nagaland, Arunachal Pradesh)
Highest wage₹374 (Haryana, Sikkim)
Pending liabilities (Feb 15)₹23,446.27 crore
Of which wage dues₹12,219.18 crore
Allocation this fiscal₹86,000 crore
Left for new work₹62,553.73 crore

Concerns

  • Clearing old dues eats into this year’s allocation, weakening the scheme.
  • The Centre froze West Bengal funds over corruption allegations, citing Section 27 of MGNREGA, 2005, which caused distress migration.
  • The Trinamool Congress protested; Chief Minister Mamata Banerjee wrote to the Centre and launched a state rural job scheme, Karmashree.

Exam angle

  • Full form: Mahatma Gandhi National Rural Employment Guarantee Scheme.
  • Wage indexation: CPI for agricultural labourers.
  • Legal provision used to stop funds: Section 27 of MGNREGA, 2005.

Test yourself

1. MGNREGS wages are currently linked to which index, which the parliamentary committee found inadequate?

The committee criticised the link to CPI for agricultural labourers.

2. Under which section of MGNREGA, 2005 did the Centre freeze funds to West Bengal?

The freeze since March 2022 cited Section 27 of the Act.

3. Which alternative rural job scheme did West Bengal's Chief Minister launch?

Mamata Banerjee launched Karmashree as an alternative scheme.