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MGNREGA Wages Do Not Match Rising Cost of Living

Context:
The House panel recommended revising wages under MGNREGS to reflect inflation.

Relevance: GS 2 (Governance)

Key Points:

  • Inadequate Wages: Nominal wages fail to meet rising living costs, discouraging participation.
  • Regional Disparity: Wages range from ₹234 in Nagaland to ₹374 in Haryana.
  • Outdated Base Rates: Based on 2019 rates or ₹100 minimum, whichever is higher.
  • Worker Concerns: Workers demand fair, timely wages to sustain the scheme’s objectives.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) – 2005

  • MGNREGA is a law passed by the Indian government in 2005, ensuring the “right to work” for rural citizens.
  • The Act guarantees a minimum of 100 days of unskilled manual work to an adult member of eligible rural households.
  • Its primary objective is to provide employment to rural citizens and improve their economic conditions.

Provisions:

Eligibility Criteria:

  • Citizen of India
    • Age: 18 years or older at the time of application
    • Rural Household
    • Willingness to do unskilled work

Guaranteed Employment:

  • The Act guarantees 100 days of unskilled employment for rural citizens at the government-set minimum wage.

Unemployment Allowance:

  • If work is not assigned within 15 days, the applicant is entitled to an unemployment allowance:
    • 1/4th of minimum wage for the first 30 days.
    • 50% of minimum wage for the subsequent period.

Social Audit:

  • Mandated by Section 17, all works under MGNREGA are subject to a social audit to ensure transparency, community participation, and government accountability.

Preference of Employment Near Residence:

  • Work is typically provided within a 5 km radius of the applicant’s village.
    • Travel allowances are provided for work beyond this distance.

Decentralized Planning:

  • Panchayati Raj Institutions (PRIs) play a major role in planning, executing, and monitoring MGNREGA works.
  • Gram Sabhas have the authority to propose work and must complete at least 50% of the total work in their respective areas.

Working Conditions and Payments:

  • Proper working conditions, medical facilities, and compensation are provided by implementing agencies.
  • Payments are made on a weekly basis, with no delays of more than 15 days.
  • Compensation for delays: If payment is delayed, complaints can be made and addressed within 7 days.

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