Context: The Election Commission of India has given the nod to the government, after the Model Code of Conduct came, to notify revised wages under the Mahatma Gandhi National Rural Employment Guarantee Act for the next financial year, effective April 1.
About wage rates for MGNREGS workers:
- The Ministry of Rural Development fixes state-wise wage rates for MGNREGS workers under sub-section (1) of section 6 of the MGNREGA, 2005.
- The wage rates are fixed according to changes in the CPI-AL (Consumer Price Index-Agriculture Labourer) which reflects the increase in inflation in rural areas.
- The CPI-(AL) is published by Labour Bureau, with 2010-11 as the base year.
- These rates are revised every year.
- MGNREGA wages are determined according to the amount of work completed, following a piece-rate system.
- The actual payment is based on the productivity of the worker, which is measured against each state's specific Schedule of Rates.
- These rates vary from state to state and serve as the basis for calculating wages for MGNREGA participants.
About Mahatma Gandhi National Rural Employment Guarantee Act:
- Introduced in: 2005.
- Nodal ministry: Ministry of Rural Development (MRD).
- Aim: For improving the purchasing power of the people living in rural areas. Primarily semi or unskilled work was given to people living below the poverty line in rural India. Also aims to guarantee the 'right to work' (Article 41).
- Mandate: To provide at least 100 days of guaranteed employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work at the statutory minimum wage.
- Key features of the act:
- It is a demand-driven wage employment programme and resource transfer from the Centre to the states is based on the demand for employment in each state.
- Adult members of rural households submit their name, age and address with a photo to the Gram Panchayat, for job card.
- The registered person can submit an application for work in writing (for at least fourteen days of continuous work) either to Panchayat or to Programme Officer.
- If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.
- The employment will be provided within a radius of 5-km. And if it is beyond 5-km, extra wage will be paid.
- Women are guaranteed one third of the jobs made available under the MGNREGA.
- The people in coordination with local administration conduct the social audits, whose objective is to ensure public accountability.