NREGS Daily Minimum Wage Unlikely to See Major Hike in FY26

Government Position

• The Centre is unlikely to raise daily NREGS wages significantly beyond the usual annual 2–7% hike.
• Reason: Fear that a sharp increase could fuel inflation and complicate fiscal and monetary management, especially with moderating price pressures.

Current Wage Scenario

• Post FY26 hike, most states still offer below ₹300/day under NREGS.
• Only Haryana pays ₹400/day, meeting the panel’s recommended level.
• NREGS wages act as a benchmark for rural and industrial wages, impacting farm costs and overall production economics.

Parliamentary Panel Recommendations

• The Parliamentary Standing Committee on Rural Development, led by Saptagiri Sankar Ulaka, recommended:
  • Raising NREGS wage to at least ₹400/day
  • Increasing annual workdays from 100 to 150
• Centre is not inclined to accept these recommendations in full.

Effectiveness Under Scrutiny

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• Government may instead focus on reviewing the scheme’s implementation:
  • National survey recommended by the House panel
  • NITI Aayog is currently evaluating NREGS for performance and impact

Sinha Panel (2023) Recommendations

• Headed by Amarjeet Sinha, the expert committee advised:
  • Substantial wage increase
  • Enhanced budgetary allocation
• The government has not implemented these recommendations yet.

Budget Outlook

• Budget for NREGS in FY26: ₹86,000 crore, same as FY25, indicating no major expansion planned.

Rural Consumption Implications

• Experts note that higher wages could boost rural demand, but this must be balanced against inflationary risks.