Revise MGNREGS wages to Rs 400, increase working days to 150: Parliamentary panel tells Centre

The committee, headed by Congress member Saptagiri Sankar Ulaka, asked the Ministry of Rural Development to revise the base wage rates “to ensure they align with current economic realities and provide respectful wages” to rural workers.

The report comes days after Congress Parliamentary Party chairperson Sonia Gandhi demanded a hike in MGNREGS wages to Rs 400 per day and an increase in work days to 150.

“At least ₹400 per day should be provided as wages, as the current rates are inadequate to meet even basic daily expenses. Without a fair wage, the scheme fails in its objective of providing economic security to rural workers. To address the economic disparities and to ensure that wages keep pace with inflation, the committee again strongly recommends that the base wage rates must be revised immediately and linked to an appropriate inflation index,” the panel said.

It also asked the ministry to explore options that could increase the number of guaranteed working days under the rural job scheme.

The committee also recommended conducting a survey on the effectiveness of MGNREGS. “This survey should focus on worker satisfaction, wage delays, participation trends and financial irregularities within the scheme. Therefore, the Committee recommend for independent and transparent survey across the country to gain valuable insights about the program’s shortcomings and accordingly introduce necessary policy reforms to increase the effectiveness of MGNREGS,” it said.

Expressing concern over the completion of kaccha or temporary work under MGNREGS, the committee said, “…once kaccha (temporary) work is completed, it should be converted into pakka (permanent) work wherever necessary to prevent repetitive work cycles and wastage of resources. Leaving kaccha work incomplete leads to unnecessary duplication of efforts and financial mismanagement.”

It also expressed concerns about the persistent delays in the disbursement of the Centre’s share of funds under the wage and material components of MGNREGS across multiple states and Union Territories.

“As per the information provided by the Department of Rural Development during the examination of the DFG [Demands for Grants] of the Ministry as of 15.02.2025, the pending liabilities stand at ₹12,219.18 crore in wages, ₹11,227.09 crore in material components and total pending liabilities are ₹23,446.27 crore. This accounts for 27.26 per cent of the current budget, meaning that more than one-fourth of the allocated funds will be used to clear previous years’ dues,” it said.

In a separate report on the National Social Assistance Programme (NSAP), the committee expressed concern that the budgetary allocation made for the payment of pensions under the programme has remained stagnant at approximately Rs 9,500 crore per annum since 2015–16, with only a marginal increase to Rs 9,652 crore. The committee also recommended the mitigation of Aadhaar-based exclusion of beneficiaries.