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Bring minimum wages under NREGS on par with states: SC to govt

FP Archives December 20, 2014, 08:14:06 IST

Supreme Court today 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.

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Bring minimum wages under NREGS on par with states: SC to govt

The Supreme Court today 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.

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The court was hearing an appeal filed by the Centre challenging the Karnataka High Court’s order which had on September 23 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.

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“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 Rs 7,500.

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 Rs 118 and Rs 181 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.

The court’s observation came after the Center challenged the Karnataka HC’s order on minimum wages in National Rural Employment Guarantee Scheme. The Centre had told the Supreme Court that if the Karnataka High Court judgment is not set aside it will impose a burden of Rs 7,500 crore on the Government and cites lack of fund.

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The Karnataka government has fixed a minimum wage of Rs 145 in NREGS in the state while the Central Government has fixed a wage of Rs 100.

Karnataka HC said in a ruling that rates fixed by the Centre were not correct and all workers should get minimum wages as fixed by the state government at Rs 145.

PTI

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