Wage revision under MGNREGS

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, guarantees 100 days of work each financial year to any rural household willing to do public work-related unskilled manual work at the statutory minimum wage.
In addition to this, there is a provision for upto additional 50 days of unskilled wage employment in a financial year in drought/natural calamity notified rural areas. The State Governments may make provision for providing additional days beyond the period guaranteed under the Act from their own funds.

The act makes it obligatory for the State to give rural households work on demand. In case such employment is not provided within 15 days of registration, the applicant becomes eligible for an unemployment allowance.
The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) was initiated as directed in MGNREGA to implement the mandate of the Act.
The Ministry of Rural Development (MRD) is monitoring the entire implementation of the MGNREGS in association with state governments.

Key Features of the Scheme

Every rural household has the right to register under MGNREGA.
One-third of the stipulated workforce must be women.
Work site facilities such as creche, drinking water and shade have to be provided.
The employment will be provided within a radius of 5 km: if it is above 5 km extra wage will be paid.
The wages are revised according to the Consumer Price Index-Agricultural Labourers (CPI-AL).
While 60 per cent of the total expenditure has to be on wage, 40 per cent spending has to be on the creation of material assets.
Permissible works predominantly include water and soil conservation, afforestation and land development works.
Gram sabhas must recommend the works that are to be undertaken and at least 50% of the works must be executed by them.
Social Audit has to be done by the Gram Sabha.

Funding Pattern

Funding is shared between the centre and the states.
The funding pattern of the scheme comprises 100% funding for unskilled labour cost and 75% of the material cost by Central Government and rest shall be borne by the State Government.

Why in News?

The Union government has notified the revised wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), with several States reporting a hike in wages by 8 to 10%.
The hike ranged from ₹7 in Uttar Pradesh (2023- ₹230 – to 2024 rate of ₹237) to ₹34 hike in Goa (2023 wages ₹322 to 2024 wages ₹356). Significant jump in wages have been reported by Telangana, Andhra Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh Maharashtra, Tamil Nadu and Goa, where the hikes varied from 8% to 10.5%. Bihar follows closely behind, where the wages have been revised by ₹17.
Haryana continues to offer the best wages at ₹374 per day, Uttar Pradesh at ₹237 has one of the lowest wages. These revised rates will be applicable from April 1.
Though a routine exercise that has to be carried out each year as per the governing Act, the Union Rural Development Ministry had to seek special permission from the Election Commission to issue the notification.
There are a total of 14.34 crore active workers. As per the latest statistics of the government, in the financial year 2023-24, the nation-wide average days of employment provided per household was 51 days as against the promise of guaranteed 100 days of work.

Today Current Affairs Upsc Exam Syllabus & Previous Yearpaper.