HomeEconomy NewsGovt raises MNREGS wage, highest in 5 years, releases more funds to mitigate rural hardships

Govt raises MNREGS wage, highest in 5 years, releases more funds to mitigate rural hardships

The government has increased wage for the workers under Mahatma Gandhi Rural Employment Guarantee Scheme (MNREGS) effective from April 1, 2020. The rural development ministry as every year since 2005 has revised the wage for workers under MNREGS, but starting April 1, 2020, hike for the workers will be highest in the 5 years, as the average national wage is increased by Rs 20.

Profile image

By Anshu Sharma  April 1, 2020, 6:24:42 AM IST (Updated)

Govt raises MNREGS wage, highest in 5 years, releases more funds to mitigate rural hardships
The government has increased wage for the workers under Mahatma Gandhi Rural Employment Guarantee Scheme (MNREGS) effective from April 1, 2020. The rural development ministry as every year since 2005 has revised the wage for workers under MNREGS, but starting April 1, 2020, hike for the workers will be highest in the 5 years, as the average national wage is increased by Rs 20.


It has also expedited the payment timeline for wage and pension payments to the states to help mitigate the hardships of rural India during the nationwide lockdown.

Wage rates under MNREGS are revised every year based on Consumer Price Index (CPI)- Agricultural Labourers by the central government.

A report recommended by a government-led committee has suggested linking MNREGS wage to CPI-rural as an appropriate index. The recommendation of the report is pending with the finance ministry.

Rural development minister Narendra Singh Tomar has written a letter to all the state chief secretaries urging them to take necessary steps to encourage individual beneficiary oriented works under the universal income scheme.

In the same letter, it has also highlighted that the central government is taking various steps to mitigate the hardships of the rural poor and aims to strengthen rural livelihoods.



The central government has also released Rs 4,431 crore to the states to pay arrears of wage and material and balance liabilities of FY20 by April 20. It has also promised to release FY21 funds for the scheme to meet the wage requirements of the first quarter.

For other schemes, the ministry has assured that by the first week of April it will release the first instalment for the beneficiaries. MoRD has also urged states to consider the release of its share of pension for 3 months of FY21 in April itself.

Tomar, also Minister for Panchayati Raj, in his letter to the states has sought active involvement of representatives of Panchayati raj institutions in sensitising people in the rural areas about the coronavirus led lockdown.

He urged to make rural inhabitants learn about social distancing, request hand washing and ways to dispel rumours and incorrect information along with vigil on quarantine and health condition of migrants.

The government has allocated Rs 61,500 crore for MNREGS and Rs 9196.92 crore for NSAP schemes for FY21.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!