The Parliamentary Standing Committee on Rural Development and Panchayati Raj has voiced strong concerns regarding the "unacceptably low" wage rates provided under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In a recent report tabled in Parliament, the committee urged the central government to revise these wages to align with the rising inflation and cost of living. Furthermore, the panel advocated for the implementation of a uniform wage rate across all states and Union Territories.
The committee, headed by Congress MP Saptagiri Sankar Ulaka, expressed disappointment with the Ministry of Rural Development's (MoRD) "stereotyped" response to the issue of wage disparity. The panel highlighted that the current average daily wage of approximately Rs 200 in many states is significantly inadequate to meet the basic daily expenses of rural households. They warned that such low wages are a major deterrent for workers, undermining the scheme's primary objective of providing financial security to rural households.
The Ministry of Rural Development (MoRD) defended its existing mechanism for wage revision, stating that wage rates are revised annually based on the Consumer Price Index for Agricultural Labour (CPI-AL). The ministry also stated that no state's wage is allowed to fall below the previous year's level and pointed out that states and Union Territories are free to provide higher wages than those notified by the Centre. For the fiscal year 2024–25, the overall increase in notified wages was around 7 per cent compared to 2023–24.
However, the committee argued that the CPI-AL does not accurately capture the real impact of inflation on rural households. They believe that the method of wage calculation must be reviewed and updated to reflect the actual economic conditions at the ground level. The panel also emphasized that the disparity in wages across states violates the principle of "equal pay for equal work" as enshrined in Article 39(d) of the Constitution. They find it incomprehensible why the ministry cannot notify a unified wage rate under MGNREGA across the country, especially since the scheme is primarily funded by the central government.
In addition to wage revisions and uniform rates, the Parliamentary Standing Committee has also called for increasing the guaranteed days of employment under MGNREGA from 100 to 150 days. This recommendation aligns with the need to cater to the work demand and create durable assets in rural areas.
The committee has also pointed out the issue of pending liabilities related to wages. As of February 15, funds to the tune of ₹23,446.27 crore were pending, including ₹12,219.18 crore in wage dues. The panel expressed concern that a significant portion of the allocated funds would be used to clear previous years' dues, limiting the scheme's capacity to function effectively.
Furthermore, the committee has recommended conducting an independent and transparent survey across the country to gain valuable insights into the program's shortcomings, including worker satisfaction, wage delays, and financial irregularities. They also stressed the need to revamp the scheme, keeping in view the changing times and emerging challenges. The committee highlighted the inconsistent participation of workers from Scheduled Castes, Scheduled Tribes, and women across districts and suggested a district-wise study to ensure equal opportunities and benefits for these communities.
The Mahatma Gandhi National Rural Employment Guarantee Act, enacted in 2005, mandates providing at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. The scheme is a centrally sponsored program, with the objective of providing a legal guarantee of wage employment to adult members of any rural household willing to do public work-related unskilled manual work.
