The Planning Commission on Tuesday said states will have to bear the additional burden of payment towards employment guarantee scheme Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) beyond the amount prescribed by the centre to match their minimum wages. Speaking to reporters in New Delhi, Deputy Chairman Planning Commission Montek Singh Ahluwalia said, if a rich state that can afford very high minimum wages, then central government reimbursement will be limited. Under the MGNREGA, a worker is entitled to 100 rupees per day for minimum of 100 days in a year. Later, it was decided to link the payment to inflation. As per the revised structure the wages under MGNREGA will go up between 17 to 30 per cent on the base of 100 rupees for the present, a move that will benefit five crore people.However, under the Minimum Wages Act, the wages are fixed by the states and these vary from state to state.Ahluwalia has said if the minimum wage in state is higher than compensation prescribed under the MGNREGA scheme, the state should bear the additional burden.Earlier, Mrs Sonia Gandhi, in her capacity as National Advisory Council (NAC) Chairperson, had written to Prime Minister Dr Manmohan Singh, saying that the wages of labourers should be linked to Consumer Price Index (CPI) to ensure that they are protected against the inflation.
News On AIR | January 18, 2011 6:29 PM
MGNREGA payment: States to bear additional burden, says Planning Commission