Health & SocialImportant2025-03-31

MGNREGA Wage Rate Revision Notified

In News

What Happened

On March 31, 2025, the Ministry of Rural Development notified the revised MGNREGA wage rates for the financial year 2025-26. The new rates featured an increase ranging from 2.33% to 7.48% across various states. Haryana recorded the highest daily wage limit in the country, reaching ₹400 per day for unskilled manual workers.

Why It Matters

This revision is critical for protecting the real income of rural workers against inflation and ensuring fair compensation. As a primary social safety net, adjusting these wages directly sustains the livelihood security, purchasing power, and economic stability of millions of vulnerable rural households in India.

Background

History & Context

The Mahatma Gandhi National Rural Employment Guarantee Act was enacted in 2005 to guarantee at least 100 days of unskilled manual work to rural households, legally backing the 'Right to Work'. Under Section 6(1) of the Act, the Central Government has the authority to notify wage rates. To account for rural inflation, these annual wage revisions are systematically pegged to the Consumer Price Index for Agricultural Labourers (CPI-AL), which is published by the Labour Bureau.

What Changed

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Quantum of Hike: Daily wages for FY 2025-26 were increased by ₹7 to ₹26 across different states, translating to a percentage hike between 2.33% and 7.48%.
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Highest Wage Rate: Haryana saw the maximum absolute increase of ₹26, making it the first state where MGNREGA baseline wages touched ₹400 per day.
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Lowest Absolute Hike: Several states, including Andhra Pradesh, Arunachal Pradesh, Assam, Nagaland, and Telangana, recorded the lowest absolute wage increase of just ₹7 per day.

Prelims Angle

NCERT Connection

This event directly connects to Class 11 Indian Economic Development, Chapter 4 ('Poverty'). The chapter discusses Centrally Sponsored Schemes for poverty alleviation, specifically highlighting MGNREGA as a major wage employment programme designed to protect the vulnerable by enforcing the 'Right to Work'.

Practice Questions

Q1

Correct Statement(s)

With reference to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) wage revisions, consider the following statements: 1. The annual wage revisions under MGNREGA are determined based on the Consumer Price Index for Industrial Workers (CPI-IW). 2. For the financial year 2025-26, Haryana recorded the highest daily wage limit for unskilled manual workers in the country. Which of the statements given above is/are correct?

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