Government hikes unskilled worker wage under MGNREGA

The Union Ministry of Rural Development on 28 March 2024 notified the annual wage rate revision for unskilled workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for 2024-2025 . Since the model poll code of conduct is in force, the Ministry secured the approval of the Election Commission of India before notifying the wage hike.

The new wage rate will come into effect from 1 April 2024.

The average MGNREGS wage nationwide for 2024-25 will be Rs 289, up from Rs 261 for 2023-24, an increase of Rs 28 per day. The wage rate increase varies from state to state. It has been hiked by 3 per cent in Uttar Pradesh and Uttarakhand,10.56 per cent in Goa, 10.4 per cent in Karnataka, 10.29 per cent in Andhra Pradesh and Telangana and 9.55 per cent in Madhya Pradesh and Chhattisgarh.

State wise Wage Rate for Unskilled Workers in 2024-25

Among the States and Union Territories, the highest wage rate for an unskilled worker is in Haryana. The wage rate in Haryana is Rs 374 per day. 

After Haryana, the second highest wage rate is in Goa, which is Rs 356 per day.

The lowest wage for unskilled workers is in Arunachal Pradesh and Nagaland, Rs 234 per day.

The wage in 

• Uttar Pradesh and Uttarakhand is Rs 237 per day, 
•  Bihar and Jharkhand Rs 245 per day, 
•  Rajasthan Rs 266 per day, and 
•  Madhya Pradesh and Chhattisgarh Rs 243 per day.

Who decides the wage rate under MGNREGS?

Under the MGNRES, the minimum wage rate paid to unskilled workers is fixed by the central government. However, the state government has the power to fix its own minimum wage rate for unskilled workers, but it should not be less than the central rate.

When is the wage revised under MGNREGS?

Under section 6(1) of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005, the government of India revises and notifies wages before the start of a new financial year (April to March). The new wage comes into effect on 1 April of the financial year. 

 Wage rates for workers under the MGNREGS are linked with the Consumer Price Index-Agricultural Labourers (CPI-AL). The CPI-(AL) is published by the Labour Bureau, Shimla. The base year of the CPI-AL is 1986-87.

What is MGNREGA and MGNREGS? 

The parliament passed the National Rural Employment Guarantee Act (NREGA) on 23 August 2005. It came into force in 200 rural districts of India on 2 February 2006 as the National Rural Employment Guarantee Scheme(NREGS). 

Prime Minister Manmohan Singh officially launched it at Anantapur district of Andhra 

Pradesh. It was later extended to all rural districts of India, effective 1 April 2008.

On 2 October  2009, the act was amended and renamed the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The scheme name was also changed to Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNRES).

Under MGNREGS, every rural household whose adult members volunteer to do unskilled manual work is provided with at least 100 days of guaranteed wage employment in a financial year. The minimum age of the adult shall be 18 years.