NREGS must match states’ wages: SC

New Delhi, Monday, Jan 23 2012: The Supreme Court on Monday asked the Centre to consider bringing the wage under the National Rural Employment Guarantee Scheme (NREGS) on par with minimum wages prevailing in different states.

A bench of justices Cyriac Joseph and Gyan Sudha Misra asked solicitor general Rohinton Nariman to ask the Centre to fix wages under NREGS after considering the minimum wages fixed by state governments.

“It is a beneficiary legislation so why there is contradiction between minimum wages and the wage paid under the NREGA Act,” the bench said.
The apex court was hearing an appeal filed by the Centre challenging the Karnataka high court’s order which had on 23 September said the wage under the National Rural Employment Guarantee Act cannot be less than the minimum wage fixed by the state government for agricultural labourers. It also said the Centre should pay arrears to workers who had been paid less.

“Why don’t you do it yourself? Take into consideration minimum wages fixed by the state while fixing wages under the Act,” the bench said, while partially staying the high court’s order pertaining to payment of arrears to workers after the Centre contended that it would cause a huge budgetary implication of Rs7,500.

The bench also issued notices to various labour unions and asked them to file their response within two weeks on the Centre’s plea.

The wage rate under the central job scheme, which varies between Rs118 and Rs181 from state to state, is less than the notified minimum daily pay in six states. But in 14 states the wages under rural job scheme is higher than the minimum wage.

This article originally appeared in the live mint on January 23, 2012.

Read the article NREGS must match states’ wages: SC in the original context.

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