Lok Sabha Question No. 3873 (UNSTARRED), answered on 2025-08-12
Subject: Revision of MGNREGS Wages
Ministry: RURAL DEVELOPMENT
Asked by: Shri Gurmeet Singh Meet Hayer

## 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

wage 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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