Parliamentary panel recommends hike in wage rates under MGNREGA 

Representational image of women workers employed under the MGNREGA scheme
| Photo Credit: L. Balachandar

Parliamentary Panel on Rural Development headed by Congress MP Saptagiri Sankar Ulaka in its report reviewing the budgetary allocation of Department of Rural Development on Wednesday (March 12, 2025), strongly argued for revision of wages and uniform rates across the country under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in view of the rising cost of living.

The per day wages currently vary from ₹234 in Nagaland and Arunachal to ₹374 in Haryana and Sikkim. The panel expressed disappointment that despite its multiple recommendations on this matter over the years, the government has not implemented any significant changes. 

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The wages currently are linked to the Consumer Price Index For Agricultural Labourers. This index, the panel said, “may not accurately reflect” the inflation trends.

“The Committee believes that this index does not fully capture the real impact of inflation, and therefore, the method of wage calculation must be reviewed and updated on a priority basis to reflect actual economic conditions at the ground level,” the panel report said. 

The panel has also urged the government to implement a “uniform wage rate” across all state and union territories, since the scheme is primarily funded by the central government. “This would help ensure fairness and consistency in wage payments under the Scheme,” the panel said. 

The panel also criticized the government for delay in disbursement of wages. As per the report, till February 15 this year, the pending liabilities in wages stand at ₹12,219.18 crore and ₹11,227.09 crore in material components and total pending liabilities are ₹23,446.27 crore. 

The panel report pointed out that one fourth of the allocated funds (₹86,000 crore) will go in clearing the last financial year’s due. “Consequently, the actual working budget for the current financial year is reduced to ₹62,553.73 crore, significantly limiting the scheme’s capacity to function effectively and meet its primary objective of preventing rural distress and ensuring livelihood security,” the report said.