Context:

• The central government has issued a notification regarding the increase in wage rates under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) for the financial year 2025-26.

Key Highlights:

New Wage Rates:

• Daily wages for MGNREGA workers have increased from ₹349 to ₹370 per person.
• Haryana recorded the highest wage hike of ₹26, bringing the daily wage to ₹400.

Extent of Increase:

• Wage rates have been increased between 2.33% to 7.48% across different states.

Beneficiaries:

• More than 5.66 crore families who availed the scheme in FY 2024-25 will benefit from this revision.

Effective Date:

• The new wage rates will come into effect from April 1, 2025.

Overview of Wage Hike Under MGNREGA:

• The Ministry of Rural Development (MoRD) issued a notification in March 2025 under Section 6, Sub-section (1) of the MGNREGA Act, revising wage rates for FY 2025-26.
• This notification states that the daily wage for MGNREGA workers has been increased from ₹349 to ₹370 per person, reflecting a significant 6% hike.
• The revised wage rates will come into effect from April 1, 2025, across the country.
• According to the Ministry, this wage increase aims to ensure fair compensation for workers in rural areas amid rising inflation.
• The increase ranges from 2.33% to 7.48%, meaning wage hikes vary from ₹7 to ₹26 across states.

State-wise Wage Hike:

Key Takeaways:

• Haryana recorded the highest wage hike: ₹26, raising the new wage to ₹400 per day.
• Lowest wage hike: Andhra Pradesh, Arunachal Pradesh, Assam, Nagaland, and Telangana recorded only a ₹7 increase.
• Chhattisgarh's new wage rate: ₹261 per day, applicable uniformly to all unskilled workers.
• Gender Equality: Both male and female workers will receive equal wages.
• New wage rates apply from April 1, 2025, for FY 2025-26.

Percentage Increase in Wage Rates Across States:

• In the previous financial year (FY 2024-25), Goa recorded the highest wage increase of 10.56%.
• Uttar Pradesh and Uttarakhand had the lowest wage growth rate of 3.04%.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):

• Enacted: September 7, 2005

Objective:

• The primary goal of MGNREGA is to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment per financial year to rural households whose adult members are willing to perform unskilled manual labor.

Earlier Name:

• Initially called the National Rural Employment Guarantee Act (NREGA), it was renamed as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on October 2, 2009.

Employment Guarantee:

• Under MGNREGA, rural households are entitled to 100 days of work upon demand.