Parliament Question: Revision of MGNREGS Wages

GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT LOK SABHA UNSTARRED QUESTION NO. 3873 ANSWERED ON 12/08/2025 REVISION OF MGNREGS WAGES

3873. Shri Gurmeet Singh Meet Hayer:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

(a) whether it is true that Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) wage rates have not been consistently revised since 2013 to keep pace with inflation;

(b) if so, the reasons for the irregular revisions and their impact on the purchasing power of workers;

(c) whether the Government acknowledges that in real terms, MGNREGS wages have declined, adversely affecting rural households dependent on the scheme;

(d) the measures taken to ensure MGNREGS wage rates reflect the realities of the economy and duly compensate the workers; and

(e) whether the Government is considering a comprehensive review of wage rates in all States to address disparities and align with minimum wage standards or working on establishing a better Index for reference of wage rates? ANSWER MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI KAMLESH PASWAN)

(a) to (e): As per Section 6 (1) of the Mahatma Gandhi National Rural Employment Guarantee Act (Mahatma Gandhi NREGA), 2005, the Central Government may, by notification, specify the wage rate for its beneficiaries. Further, section 6 (2) of the Act, provides that until such time a wage rate is fixed by the Central Government in respect of any area in a State, the minimum wage fixed by the State Government under section 3 of the Minimum wages Act, 1948 for Agricultural Laborers shall be considered as the wage rate applicable to that area. Accordingly, as per provision of Section 6(2) of the Act, from the inception of the scheme till the financial year 2010-11, the Page 1 of 2wage rate in Mahatma Gandhi NREGA was determined based on the minimum wage set by the respective State Governments. However, from the financial year 2011-12, the Government of India started determining the wage rates using the Consumer Price Index for Agricultural labourers (CPI-AL).

To compensate the Mahatma Gandhi NREGA workers against inflation, the Ministry of Rural Development revises the wage rate every financial year, based on changes in the Consumer Price Index for Agricultural Labourers (CPI-AL). The index is different for different States/UTs as notified by the Labour Bureau Shimla, Ministry of Labour and Employment. If the calculated wage rate of any State/UT is coming lower than the wage rate of the previous year, it is being protected by maintaining the previous year's wage rate. Accordingly, wage rate of Mahatma Gandhi NREGS workers are being revised every year since FY 2011-12. The revised notified 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 for FY 2025-26 which has increased by around 5% (average) over the last financial year and around 29% (average) in the previous 5 financial years. However, State Governments can provide wages over and above the wage rate notified by the Central Government from its own sources.

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