Wage rates for workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 are notified and revised annually based on Consumer Price Index-Agricultural Labourers (CPI-AL) by the Central Government in accordance with the provisions of Section 6(1) of the Mahatma Gandhi NREGA. The revised wage rates are made applicable from 1st April of the year. The CPI-(AL) is published by Labour Bureau, Shimla. For the FY 2018-19, the wage rate has been revised w.e.f. 01.04.2018 based on CPI-(AL).
MGNREGA wages are paid based on measurement of work done i.e. piece rate basis. Every State has its defined Schedule of Rates on the basis of which the work output is defined and used to calculate the wages for MGNREGA beneficiaries. The actual wage payable is calculated based on the output of the worker.
A Committee under the chairpersonship of former Additional Secretary, Ministry of Rural Development was constituted to study among other things the appropriate index for revising MGNREGA wages. The Committee recommended using Consumer Price Index-Rural instead of the existing CPI-AL for revising MGNREGA wages every year. The Committee also recommended use of annual average instead of the existing practice of using December month index only. The recommendations of the Committee are under consideration in consultation with the Ministry of Finance.
This information was given by the Minister of State for Rural Development, Shri Ram Kripal Yadav in Rajya Sabha today.