NREGS, Asha workers may see wage hikes

Wages of workers under Mahatma Gandhi National Rural Employment Guarantee, Asha and Anganwadi and mid-day meal schemes are set to benefit from an upward revision with the government readying a revamp of the consumer price index for agricultural and rural workers, CPI-AL and CPI-RL, with 2019 as base year instead of 1986-87 and consumption basket.A senior government official told ET on the condition of anonymity that the new index with a revised base year and basket is likely to be launched in September.CPI-AL/RL is basically used for revising minimum wages for agricultural and rural labourers in different states.The National Sample Survey Office (NSSO) is conducting the market survey for base year revision of CPI (AL/RL) to help construct the new series with a new base year.“The base year price collection from 787 villages throughout the country will continue till finalisation of the new series,” another official said. 84566271The second official said the labour bureau would use the results of Consumer Expenditure Survey, NSS 68th Round results that was done in 2011-12, to compile the basket for the new series.“Thereafter, regular price collection will start under the new series,” the official added.Wages, basket upgradeThe revised index will see a significant shift in the consumption basket with expenditure on food likely to go down, paving way for more spend on health and education.“The markets covered under the index and the consumption basket, both, have undergone a change with the change in base year. This may impact the minimum wages for Mgnrega and mid-day meal workers amongst others,” the official quoted above said, without sharing more details.MGNREGA wages have been revised upward by ₹20 from April 1, 2020 to 202 per day against ₹182 earlier. State disparitiesThe government is also attempting to bring down disparities within states and is working to provide individual indices for all states.Currently, 20 states have their own index and the remaining states determine wages based on the index available in neighbouring states, often resulting in disputes over underpayment of wages.For example, sometime back, Sikkim had refused to use the index for West Bengal saying that there was significant difference in the consumption basket of the two states. Beside Sikkim, other states too have been demanding that the government formulate an individual index reflecting consumption in their state and revise the base year.

from Economic Times https://ift.tt/3hRTdb2