Parliamentary panel raises concern over low wages under MGNREGS
New Delhi: A Parliamentary Standing Committee on Rural Development and Panchayati Raj has criticised the Union Ministry of Rural Development for failing to link wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to inflation. In its report, tabled in the Lok Sabha on Thursday, the panel, headed by Congress MP Saptagiri Sankar Ulaka, called for immediate action to revise wages and address existing disparities.
The committee highlighted that MGNREGS wages—averaging around Rs 200 per day in many states—fall significantly below prevailing market rates for unskilled labour. “Rising inflation and cost of living, be it in urban or rural settings, is evident to all. Even now, wage rates notified under MGNREGA defy logic when compared to labour rates in the same states,” the report stated.
The committee questioned the ministry’s repeated “stereotype responses” on wage revision and urged it to revisit its stance. “It becomes inexplicable why wages under MGNREGA cannot be linked to a suitable index commensurate with inflation. A mechanism for raising wages must be devised immediately,” the panel asserted. Disparity in wages across states emerged as another significant concern. Citing Clause (d) of Article 39 of the Constitution, which ensures equal pay for equal work irrespective of gender, the committee demanded uniformity in wages under the scheme across all states and union territories.
“There cannot be different wages for different states under MGNREGA. The committee strongly recommends parity in wages to ensure equality for beneficiaries nationwide,” the report stated.
The panel also emphasised strengthening financial management and addressing implementation gaps at the grassroots level. Persistent delays in wage disbursement and material payments were identified as critical issues that needed urgent resolution.
Additionally, the committee recommended increasing the number of guaranteed workdays under the scheme from the current 100 to 150 days per household, citing the rising demand for rural employment.
Implemented in 2006, MGNREGS is a flagship rural employment scheme aimed at enhancing livelihood security by providing at least 100 days of wage employment annually to rural households willing to undertake unskilled manual work. The wages under the scheme were last revised in April 2024, with increases ranging from 4 per cent to 10 per cent across states.
Currently, Haryana offers the highest wage under the scheme at Rs 374 per day for unskilled labour, while Arunachal Pradesh and Nagaland have the lowest at Rs 234 per day. Notably, a 2019 expert committee chaired by Anoop Satpathy had recommended a wage rate of Rs 375 per day under MGNREGS, a figure yet to be realised.
