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Wages of NREGS hiked by 6%

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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 inflationWages of NREGS hiked by 6%
  • 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