Why in the News?

The Centre has announced a hike in the wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the financial year 2025-26, with an increase ranging from 2-7%.

Wage Revision Under MGNREGS:

2025-26 Wage Hike:
- Wage increase: 2.33%-7.48%, with ₹7 to ₹26 rise.
- Haryana records the largest hike of ₹26, bringing the wage to ₹400 per day (highest in India).
Wage Calculation:
- Wages are linked to the Consumer Price Index for Agricultural Labourers (CPI-AL).
Previous Hikes:
- Goa had the largest hike of 10.56% in 2024-25.
- Uttar Pradesh and Uttarakhand had the smallest at 3.04%.

The MGNREGS, launched in 2005, guarantees 100 days of wage employment annually for rural households.
It provides a legal right to work, focusing on unskilled manual labour.
Unique Features:
- 100 days of employment for rural households, with adult members volunteering for unskilled work.
- If employment isn’t provided within 15 days, an unemployment allowance is paid.
- Work must be offered within 5 km of the applicant’s residence.
- The Centre funds 100% of unskilled labour costs, 75% of skilled labour and materials, and 6% of administrative costs.

- Rural households are entitled to 100 days of employment. Additional days are allowed during natural calamities or for Scheduled Tribe households.
- Citizens can conduct social audits to ensure transparency, with all records open to public scrutiny.
- Worksites must provide crèches, drinking water, and first aid.
- Workers more than 5 km from the worksite receive a travel allowance of 10% of the wage rate.

Delayed Payments: ₹11,423 crore owed for wages and administrative costs as of January 2025, with workers facing delays of weeks or months.
Inadequate Wage Rates: Wage rates are not linked to inflation, with the highest wage for 2024-25 at ₹374 in Haryana, below the national minimum wage.
Technological Challenges: Issues with Aadhaar-based payments and mobile monitoring systems have led to non-payment or misdirected funds.
Budget Constraints: Budget allocations have decreased from 0.4% of GDP in FY22 to 0.2% in FY25, impacting workdays and payments.
Social Audit Irregularities: Irregular audits by Gram Sabhas raise concerns about accountability and transparency.

[UPSC 2011] Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?

(a) Adult members of only the scheduled caste and scheduled tribe households

(b) Adult members of below poverty line (BPL) households

(d) Adult members of any household