The increase assumes significance, as the MGNREGS rates serve as the benchmark for rural wages and influence the rise in industrial wages as well. The hikes are linked to the changes in the Consumer Price Index (Agriculture Labour), which captures the inflationary pressure in rural areas.
In absolute terms, the daily wages have been raised in the ₹7-26 range, according to a notification by the rural development ministry. The revised wages for different states and Union territories range from ₹221 per day (Chhattisgarh/Madhya Pradesh) to ₹357 (Haryana) for FY24.
Highest Hike for Rajasthan
Rajasthan saw the highest increase (10.4%) in the wage rate for FY24 and Goa the lowest hike (2.2%).
The states and Union territories where the wage rate hike for FY24 remains below 5% are Arunachal Pradesh, Assam, Goa, Karnataka, Manipur, Meghalaya, Nagaland, Tamil Nadu and Puducherry.
The MGNREGS guarantees 100 days of employment in every fiscal year to adult members of any rural household who are willing to do unskilled manual work for public purposes.
According to the government’s revised estimate, spending on the MGNREGS is expected to rise to Rs 89,400 crore this fiscal year from the budgeted Rs 73,000 crore. The government has budgeted Rs 60,000 crore for FY24, but finance minister Nirmala Sitharaman has indicated that more funds would be allocated for the scheme if required.