ISSUES RELATING TO WAGES UNDER MGNREGS
ISSUES RELATING TO WAGES UNDER MGNREGS
State and year-wise details of workers who availed of employment under Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) during the last five financial years are given at Annexure-I.
Mahatma Gandhi NREGS is a demand-driven wage employment scheme. Funds release to States/UTs is a continuous process, and the Central Government is committed to making funds available to States/UTs for the implementation of the scheme as per the demand for work on the ground.
Regarding budget allocation for Mahatma Gandhi NREGS, it is submitted that, for the financial year 2024-25, budget allocation of ₹86,000 crore has been made, which was the highest ever allocation for scheme at the Budget Estimate (BE) stage since inception. In the financial year 2025-26, the Government has retained this allocation at ₹86,000 crore, ensuring continued support for rural employment.
Here it is also submitted that keeping in view demand driven nature of the Scheme, the Ministry of Rural Development closely monitors demand for employment at ground level and seeks additional funds from the Ministry of Finance, as and when required.
Under Mahatma Gandhi NREGS during the last five years, more than 96% of Funds Transfer Orders (FTOs) have consistently been generated within 15 days of closure of muster roll. The Scheme is a demand-driven wage employment programme under which wage payments are directly credited by the Central Government into the accounts of beneficiaries through the Direct Benefit Transfer (DBT) protocol. Sanctions for wage payments are issued daily by the Ministry through the Public Finance Management System (PFMS) based on fund transfer orders received from the States after due procedures. At the beginning of each financial year, admissible pending liabilities of the previous year, if any, are duly reimbursed by the Government of India. Accordingly, all pending wage liabilities upto FY 2024-25 have already been cleared.
Under Mahatma Gandhi NREGS, 100% of wage payments are made by the Central Government directly to the accounts of beneficiaries through DBT mode.
As per Section 6 (1) of Mahatma Gandhi National Rural Employment Guarantee Act (Mahatma Gandhi NREGA), 2005, the Central Government may by notification specify the wage rate for unskilled work for its beneficiaries. Accordingly, the Ministry of Rural Development notifies Mahatma Gandhi NREGA wage rate for every financial year for States/UTs. To compensate the Mahatma Gandhi NREGA workers against inflation, the Ministry of Rural Development revises the wage rate every year based on change in Consumer Price Index for Agricultural Labour (CPI-AL). The wage rate is made applicable from 1st April of each financial year.
Using the present methodology of wage rate calculation, the central government has notified the wage rate and it has increased by around 5% (average) over the last year and around 29% (average) in the previous 5 years. However, State Governments can provide wages over and above the wage rate notified by the Central Government from its own sources.
Currently, three States i.e. Jharkhand, Himachal Pradesh & Odisha are providing a top-up over and above the wage rate notified by the central government.
State/UT-wise notified wage rates for unskilled workers under Mahatma Gandhi NREGS during the last five financial years are given at Annexure-II.
Annexure-I
State and year-wise details of workers who availed of employment under Mahatma Gandhi NREGS during the last five financial years. (Fig. in Crores)
States/UTs
FY
2024-25
FY
2023-24
FY
2022-23
FY
2021-22
FY
2020-21
Andhra Pradesh
0.75
0.75
0.76
0.77
0.80
Arunachal Pradesh
0.03
0.03
0.03
0.03
0.02
Assam
0.26
0.33
0.34
0.40
0.36
Bihar
0.56
0.54
0.58
0.54
0.58
Chhattisgarh
0.45
0.44
0.47
0.55
0.60
Goa
0.00
0.00
0.00
0.00
0.00
Gujarat
0.13
0.15
0.16
0.18
0.19
Haryana
0.05
0.05
0.04
0.06
0.07
Himachal Pradesh
0.10
0.09
0.09
0.10
0.09
Jammu and Kashmir
0.11
0.10
0.10
0.11
0.11
Jharkhand
0.23
0.26
0.25
0.31
0.32
Karnataka
0.52
0.54
0.53
0.64
0.57
Kerala
0.15
0.17
0.18
0.19
0.19
Ladakh
0.00
0.00
0.00
0.00
0.00
Madhya Pradesh
0.58
0.64
0.76
0.96
1.05
Maharashtra
0.51
0.41
0.37
0.37
0.31
Manipur
0.06
0.05
0.04
0.06
0.06
Meghalaya
0.05
0.06
0.06
0.07
0.08
Mizoram
0.02
0.02
0.02
0.02
0.02
Nagaland
0.02
0.05
0.05
0.05
0.04
Odisha
0.34
0.50
0.52
0.56
0.62
Punjab
0.10
0.10
0.10
0.11
0.12
Rajasthan
0.77
0.87
0.88
1.01
1.11
Sikkim
0.01
0.01
0.01
0.01
0.01
Tamil Nadu
0.74
0.79
0.76
0.80
0.79
Telangana
0.42
0.41
0.45
0.49
0.54
Tripura
0.08
0.08
0.08
0.09
0.08
Uttar Pradesh
0.76
0.81
0.84
0.95
1.16
Uttarakhand
0.06
0.06
0.07
0.08
0.09
West Bengal
0.00
0.00
0.20
1.11
1.18
Andaman and Nicobar
0.00
0.00
0.00
0.00
0.00
Dadra and Nagar Haveli and Daman and Diu
0.00
0.00
0.00
0.00
0.00
Lakshadweep
0.00
0.00
0.00
0.00
0.00
Puducherry
0.01
0.01
0.00
0.00
0.01
Total
7.88
8.34
8.75
10.61
11.17
Annexure-II
State/UT-wise notified wage rates for unskilled
workers under Mahatma Gandhi NREGS during the last five financial years
(in Rs.)
Sl. No.
State/UTs
2020-21
2021-22
2022-23
2023-24
2024-25
1
Andhra Pradesh
237
245
257
272
300
2
Arunachal Pradesh
205
212
216
224
234
3
Assam
213
224
229
238
249
4
Bihar
194
198
210
228
245
5
Chhattisgarh
190
193
204
221
243
6
Goa
280
294
315
322
356
7
Gujarat
224
229
239
256
280
8
Haryana
309
315
331
357
374
9
Himachal Pradesh Non-Scheduled Areas
198
203
212
224
236
9(a)
Himachal Pradesh Scheduled Areas
248
254
266
280
295
10
Jammu And Kashmir
204
214
227
244
259
11
Ladakh
204
214
227
244
259
12
Jharkhand
194
198
210
228
245
13
Karnataka
275
289
309
316
349
14
Kerala
291
291
311
333
346
15
Madhya Pradesh
190
193
204
221
243
16
Maharashtra
238
248
256
273
297
17
Manipur
238
251
251
260
272
18
Meghalaya
203
226
230
238
254
19
Mizoram
225
233
233
249
266
20
Nagaland
205
212
216
224
234
21
Odisha
207
215
222
237
254
22
Punjab
263
269
282
303
322
23
Rajasthan
220
221
231
255
266
24
Sikkim
205
212
222
236
249
24 (a)
Sikkim (Three Gram Panchayats Named
Gyanthang, Lachung And Lachen)
308
318
333
354
374
25
Tamil Nadu
256
273
281
294
319
26
Telangana
237
245
257
272
300
27
Tripura
205
212
212
226
242
28
Uttar Pradesh
201
204
213
230
237
29
Uttarakhand
201
204
213
230
237
30
West Bengal
204
213
223
237
250
31
Andaman
267
279
292
311
329
31(a)
Nicobar
282
294
308
328
347
32
Dadra and Nagar Haveli
258
269
278
297
324
33
Daman & Diu
227
34
Dn Haveli
266
266
284
304
315
35
Puducherry
256
273
281
294
319
This information was given by Minister of State for Rural Development Shri Kamlesh Paswan in a written reply in Lok Sabha today.