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Blog / 29 Mar 2025

Wage hike under MGNREGS

Context: 

  • The Centre has recently announced a wage increase for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the financial year 2025-26. The wage rates have been increased by 2-7% across various states, with hikes ranging from ₹7 to ₹26 per day.
  •         The Ministry of Rural Development (MoRD) notifies the wage rates under Section 6(1) of the MGNREGA, 2005, which mandates the government to adjust the wage rates annually based on the CPI-AL.

Wage Hike Breakdown

State/UT

Previous Wage (₹)

New Wage (₹)

Increase (%)

Andhra Pradesh

300

307

2.33

Arunachal Pradesh

234

241

2.99

Assam

249

256

2.81

Bihar

245

255

4.08

Chhattisgarh

243

261

7.41

Goa

356

378

6.18

Gujarat

280

288

2.86

Haryana

374

400

6.95

Himachal Pradesh (Non-Scheduled)

236

247

4.66

Himachal Pradesh (Scheduled)

295

309

4.75

Jammu & Kashmir

259

272

5.02

Ladakh

259

272

5.02

Jharkhand

245

255

4.08

Karnataka

349

370

6.02

Kerala

346

369

6.65

Madhya Pradesh

243

261

7.41

Maharashtra

297

312

5.05

Manipur

272

284

4.41

Meghalaya

254

272

7.09

Mizoram

266

281

5.64

Nagaland

234

241

2.99

Odisha

254

273

7.48

Punjab

322

346

7.45

Rajasthan

266

281

5.64

Sikkim

249

259

4.02

Sikkim (3 Gram Panchayats)

374

389

4.01

Tamil Nadu

319

336

5.33

Telangana

300

307

2.33

Tripura

242

256

5.79

Uttar Pradesh

237

252

6.33

Uttarakhand

237

252

6.33

West Bengal

250

260

4.00

Andaman & Nicobar (Andaman)

329

342

3.95

Andaman & Nicobar (Nicobar)

347

361

4.03

Dadra & Nagar Haveli and Daman & Diu

324

340

4.94

Lakshadweep

315

336

6.67

Puducherry

319

336

5.33

     

      • Haryana recorded the highest wage hike, with an increase of ₹26, bringing the daily wage to ₹400. These marks the first time MGNREGS wages will touch ₹400 per day in any state.
      • Andhra Pradesh, Telangana, and Nagaland saw the lowest wage increase of ₹7, which is about 2.33% for these states.

      Key Highlights

      • The revision in  wages is based on changes in the Consumer Price Index for Agricultural Labourers (CPI-AL), which tracks inflation in rural areas. The hike aims to ensure that rural laborers' wages keep pace with rising living costs.
      • The new wage rates will be applicable starting from April 1, 2025, marking the beginning of the new financial year.

      Key benefit of MGNREGS to the rural households

      • MGNREGS provides a social safety net for rural households, guaranteeing 100 days of unskilled manual labor per year for adult members. This scheme helps improve livelihood opportunities, reduce rural poverty, and offer employment during lean agricultural seasons.
      • certain households are entitled to more than 100 days of work:
        • Scheduled Tribe households in forest areas can avail up to 150 days of work.
        • Additional days can be granted in cases of natural calamities or drought, as notified by the Ministry of Home Affairs.

      ·         As of March 19, 2025, 5.66 crore households have availed of MGNREGS work in the ongoing financial year (2024-25), highlighting the significant reach of the program.

      Conclusion:

      • These wage hikes are expected to enhance the purchasing power of rural laborers, improve the standard of living, and support rural economies by providing a consistent income to households engaged in unskilled labor.