Wage Indexation Controversy, Minimum Wage Rate, NREGA, Union Govt

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Wage Indexation Controversy

  • The NREGA workers are being paid less than the minimum wages in certain states like AP, Kerala and Rajasthan where MNREGA workers are being paid less than the agricultural labourers.
  • During 2009 - 10 there were about 10 states which were paying less than the agricultural wage rate
  • In January 2011, Union Govt revised the wage rates linking to the CPI (AL) and turned down the demand to link it with the Minimum Wage Rate.
  • In September 2011, Karnataka HC ruled that MNREGS workers be paid in parity with the minimum agricultural wage rate for labour.
  • Pranab Sen committee has been set up for the indexation of wages