The Union government has proposed to hike the wages of NREGS workers by 6%. They have dropped the new wage calculation formula.
Flash points
- The government appointed a committee to revise the wage calculation formula for the MGNREGA workers
- According to the new recommendations, the wages will be calculated on CPI-rural index
- The current scheme of wages is based on the agricultural labour index
- It is said by officials that the new scheme will help the workers to combat with the spiking prices due to inflation
- However this will cost an additional 2000 crore rupees for the government
- Hence hey have dropped the new wage scheme and hiked the wages by 6%
MGNREGA Scheme
- This scheme was started by the UPA government in 2005 to provide work to the unemployed households of rural areas
- The NDA government increased the working days from 100 to 150
- They allotted 38,500 crores this fiscal for MGNREGA
- However the drawback of this scheme is the varying minimum wages in different states
- For example in Kerala it is 500 and in states like Bihar it is below 170
- The new wages scheme might have brought the differences closer
- But the finance ministry sought further clarification and currently proposed a mere hike of 6%
Points to Know
- MGNREGA – Started in April,2006 in 200 districts
- It is the largest rural employment scheme in the world
- Committee to revise wages headed by Mahendra Dev
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