
In preparation for the upcoming general elections, the Centre has announced an increase in wage rates for MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Scheme) workers for the financial year 2024-25. The revised wage rates will take effect from April 1, 2024.
Among the states, Goa and Karnataka have witnessed the highest percentage increase, with rates of 10.56% and 10.4% respectively. On the other hand, Uttar Pradesh and Uttarakhand will experience the lowest increase at 3% for FY’24-25. Andhra Pradesh, Telangana, and Chattisgarh have seen significant percentage increases, ranging from 9.95% to 10.29%.
The average wage increase for MGNREGA workers across India is ₹28 per day. Consequently, the average wage for the financial year 2024-25 will be ₹289, compared to ₹261 in FY’23-24.
Currently, the MGNREGA wages are determined based on changes in the CPI-AL (Consumer Price Index- Agriculture Labor), which reflects inflation in rural areas. The Ministry of Rural Development, responsible for administering the MGNREGA scheme, sought permission from the Election Commission to announce the revised wage rates due to the model code of conduct being in effect for the upcoming general elections.
In terms of absolute figures, Haryana will have the highest wage rate of ₹374 per day, while Arunachal Pradesh and Nagaland will have the lowest rate at ₹234 per day.
Last year, the Rural Development Ministry announced the MGNREGA wage increase for 2023-24 on March 24, with the increase ranging from 2% to 10%. Earlier this year, the Parliamentary Standing Committee on Rural Development raised concerns about inadequate wages that do not align with the rising cost of living. The committee also highlighted the significant variation in MGNREGA wages across different states.
As a result, the committee requested the Rural Development Ministry to explore the feasibility of revising the base year and base rate for calculating MGNREGA wages. Currently, the base year for wage calculation is 2009-10, which is considered outdated. In addition to the need for increased wages, the committee also addressed the issue of delays in wage disbursement.
The Centre has allocated ₹86,000 crore for MGNREGA in the Union Budget 2024-25, which aligns with the revised estimate for the ongoing financial year 2023-24.
Apart from the Centre’s notified wage rates, states have the option to provide higher wage rates for MGNREGA beneficiaries.