What is the New Wage Rate for MGNREGA Workers in 2025-26?
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Synopsis
The Central government has announced a 5 percent wage increase for Mahatma Gandhi NREGA workers for FY 2025-26. This marks a notable adjustment in response to inflation and is part of ongoing efforts to support rural workers. Discover the implications of this wage revision and its historical context.
Key Takeaways
- Wage Rate Increase: MGNREGA workers will see a 5 percent wage increase in FY 2025-26.
- Annual Revision: Wage rates are updated every financial year based on CPI-AL.
- State Contribution: States can provide additional wages from their funds.
- Historical Growth: Average wage increase of 29 percent over five years.
- Effective Date: New wage rates take effect on April 1st each year.
New Delhi, Aug 12 (NationPress) The Central government has officially announced the wage rate for Mahatma Gandhi NREGA workers for the financial year 2025-26, reflecting an increase of approximately 5 percent (on average) compared to the previous fiscal year, as reported to the Lok Sabha on Tuesday.
Minister of State for Rural Development Kamlesh Paswan mentioned in a written response that due to the recent adjustments made by the Central government, the wage rate has seen an overall increase of around 29 percent (on average) over the past five financial years.
Paswan stated, “State Governments have the option to offer wages that exceed the rate set by the Central government using their own funds.”
He emphasized the measures taken by the Central government to support workers amidst inflation, explaining that the Ministry of Rural Development updates the wage rate annually based on fluctuations in the Consumer Price Index for Agricultural Labourers (CPI-AL).
The Minister of State noted that the index varies across different States and Union Territories, as specified by the Labour Bureau in Shimla, part of the Ministry of Labour and Employment.
“If the calculated wage rate for a State or UT is lower than the wage rate from the previous year, the prior year's wage rate is preserved. Consequently, the wage rate for Mahatma Gandhi NREGS workers has been revised every year since FY 2011-12. The updated wage rate takes effect from April 1st of each financial year,” stated the MoS.
Paswan further explained that according to Section 6(2) of the Act, from the launch of the scheme until FY 2010-11, the wage rate for Mahatma Gandhi NREGA was determined by the minimum wage established by the respective State governments.
“However, from FY 2011-12 onward, the Central government commenced determining wage rates using the Consumer Price Index for Agricultural Labourers (CPI-AL),” he added.
Point of View
It's vital to recognize the government's proactive steps to adjust wages for MGNREGA workers, reflecting a commitment to tackle inflation. This annual revision not only supports rural economies but also ensures that laborers receive a fair wage. It's a significant move towards enhancing the livelihoods of millions across the nation.
NationPress
09/10/2025
Frequently Asked Questions
What is the wage increase percentage for MGNREGA workers in FY 2025-26?
The wage rate for MGNREGA workers has increased by approximately 5 percent for the financial year 2025-26.
How often does the Central government revise MGNREGA wages?
The Central government revises the wage rates for MGNREGA workers every financial year, based on changes in the Consumer Price Index for Agricultural Labourers.
What is the role of State Governments in MGNREGA wages?
State Governments have the authority to offer wages that exceed the rates set by the Central government from their own resources.
When are the revised wage rates for MGNREGA applicable?
The revised wage rates for MGNREGA workers become effective from April 1st of each financial year.
How has the wage rate changed since the inception of MGNREGA?
Since the inception of the scheme, the wage rate has undergone significant revisions, with an average increase of about 29 percent over the past five financial years.
