The finance ministry has decided to continue with the existing arrangement for guaranteed minimum wages, and said that the matter will be reviewed at an appropriate time. This follows a meeting conducted by Prime Minister Manmohan Singh on July 5 on the issue.
Stating that no proposal of the finance ministry to fix the guaranteed minimum wage under the National Rural Employment Guarantee Act (NREG Act) was turned down at the meeting, Finance Minister P Chidambaram has said his ministry will be happy to implement any decision of the prime minister and the government.
It may be recalled that at a meeting held by the prime minister in October 2004, it was decided that minimum wages should be notified under the proposed NREG Act itself, and not linked to minimum wages under the Minimum Wages Act.
When the Budget for 2006-07 was being prepared, the finance ministry was instructed to make suitable allocation on the basis that the cost would be Rs 100 per worker per day (Rs 60 as wage component and Rs 40 as materials component). Accordingly, a suitable budgetary provision was made.
When the NREG Bill was placed before Parliament, there were consultations between the government and other political parties.
Defence Minister Pranab Mukherjee led the discussions on behalf of the government and at the end of the consultations, the defence minister conveyed to Chidambaram that amendments would be made to the draft Section 6 and it would be made clear that the central government would notify the wage rate under Section 6(1) immediately after the Act came into force.
Once the Act came into being, the rural development ministry said there were certain difficulties in notifying the wage rate under Section 6(1) of the Act. Hence, at the instance of the ministry, the July 5 meeting was held.
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