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TABLE OF CONTENTS

1. Abysmal Wage Rates for MGNREGA in FY 2022–23
2. Emerging Pattern and Trend of Migration in Megacities

1. Abysmal Wage Rates for MGNREGA in FY 2022–23

Context

The wage rates of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers for the financial year 2022–23 were notified recently.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

• MGNREGA is a social security act launched in 2005.
• The Act was earlier named the “National Rural Employment Guarantee Act”.
• The mandate of the Act is to provide a minimum of 100 days of guaranteed wage employment in a financial year to every rural household where adult members volunteer to do unskilled manual work.
• The core objectives of the MGNREGA include:
  • Providing a minimum of 100 days of unskilled manual work as guaranteed employment in a financial year, which results in the creation of productive assets of prescribed quality and durability
  • Secure the livelihood resource base of the poor
  • Ensure social inclusion 
  • Empowering Panchayati Raj Institutions

Read more – MGNREGA

MGNREGA Wage Rates

• According to the sub-section (1) of Section 6 of the MGNREGA, 2005, the Union government fixes the state-wise wage rates for unskilled manual workers, who work under the rural job guarantee scheme.
• The MGNREGA wage rates are fixed based on the changes in the Consumer Price Index-Agriculture Labour (CPI-AL) which estimates the rise in the inflation levels in the rural areas.

Wage Rates for FY 2022-23  

• The wage rate for FY 2022-23 was notified by the Ministry of Rural Development.
• 21 out of 34 states and Union Territories have got less than a 5% increase and 10 states have received over a 5% increase. 
• There has been no change in the wage rates for Manipur, Mizoram and Tripura.
• The highest hike in wage rate was seen in Goa (7.14%).
• The lowest hike in wage rate was seen in Meghalaya (1.77%).
• The average increase in wages is between Rs.4 to Rs.21 across the country.
• After the introduction of the new wage rates: 
  • The states with the highest MGNREGA wages are Haryana (Rs. 331/day), Goa (315), Kerala (311), Karnataka (309) and Andaman & Nicobar Islands (308). 
  • The states with the lowest MGNREGA wages are Tripura (212), Bihar (210), Jharkhand (210), Chhattisgarh (204) and Madhya Pradesh (204).

Criticism

• The notification of the wage rate is regarded as arbitrary as it was announced with only three days remaining for the beginning of the next financial year. 
  • The delay in the announcement hinders discussions or debates on the wage rates.
• The meagre increase in the wage rates has not been proportional to that of inflation and the cost of living in recent years.
• Critics feel that by announcing very little increase in the wage rates, the government is ignoring the rural employment guarantee programme.
• The average hike in the wage rates across the states is a meagre 4.25% when compared to the 31% increase in the dearness allowance (DA) for government employees.
• Also, critics point out that the government revises the DA for its employees twice a year and pays thousands of crores for it but ignores the MGNREGA workers.
• A lower increase in the wage rate at a time when the country is experiencing an employment crisis will further hinder the growth of the rural economy. 
• There has been an increase in job loss for millions across the country due to the pandemic and an increase in the instances of reverse migration which has aggravated the pressure on the rural economy; in this context, the meagre or no significant hike in wage rates for MGNREGA works offers no relief.
• It is criticised that the governments spend more on populist schemes rather than on initiatives that positively impact the labour markets and wage rates.
• The government has failed to implement the recommendations of various committees such as,
  • Mahendra Dev Committee – bring the MGNREGA wages on par with the state minimum wages.
  • Nagesh Singh Committee – the use of Consumer Price Index-Rural Labourers (CPI-RL) instead of the CPI-AL.
  • Anoop Satpathy Committee – fixing the minimum wages at Rs. 375/day.

Way forward

• There should be an increase in the MGNREGA wages, as it will in turn lead to increased rural and urban industrial wages. 
• The increase in the wage rates will also further increase the rural expenditure and boost the aggregate demand in the economy, which is critical for economic recovery.
• The government must obey the Supreme Court’s rulings which have repeatedly upheld minimum wages as a fundamental right and equated payment of anything less to the status of “forced labour.” 
• As the low budgetary allocations and unremunerative wages have pushed several rural workers away from the programme, the government must take immediate actions to address these challenges associated with the initiative.
• Lastly, the implementation of the MGNREGA should continue as a demand-driven programme as it was intended with the true spirit of guaranteeing jobs to rural households.

2. Emerging Pattern and Trend of Migration in Megacities

Context

This article analyses the current trends in migration patterns across the country.

Human Migration 

• Human Migration is the movement of people away from their usual residential place to other places, either within the country or across countries’ borders.
• Migration is an inevitable process in a globalised world as it improves the social and economic situation of individuals as it provides better opportunities.
• Historically humanity has been known to migrate to different places for reasons such as widening economic opportunities, to join with the family, or for education. 
• The recent reasons for human migration include escape from conflict, persecution, terrorism, or human rights violations, in response to the adverse effects of climate change, natural disasters, or other environmental factors.

Read more about Human Migration in India

Migration trends in India

• According to the census figures from 2001 to 2011 and the National Sample Survey Office data, rural-to-urban migration, especially between the states, continues to be towards the most significant type of migration.
• Megacities continue to be the most favoured destinations for migrants. 
• • Delhi is the most preferred megacity for migration from other states.
  • The various factors that drive migrations to megacities include inadequate educational facilities, unemployment, and social unrest.
• However, there is a significant increase in migration to smaller cities.

Analysing the trend

Migration to Megacities

• In India, urbanisation is taking place at a rapid rate because of rural-to-urban migration, natural population growth, classification of rural areas as towns, and change in employment structure. 
• But reports from census data suggest that the decadal growth rate of the urban population is higher than the growth rate of urban areas resulting in a significant rise in the urban population density.
• The population growth rate and growth in the area of India’s megacities has reduced in the period 2001–11 compared to 1991–2001.
• The population in megacities has reduced because of the increase in the population of other urban areas that are not megacities.

Migration to smaller cities

• In 2001, 15% urban population lived in three megacities namely Mumbai, Delhi and Kolkata, that accounted for 4% of the total urban area. Whereas in 2011, only 13% of the urban population lived in megacities, which accounted for 3% of the total land area.
• This data suggests a decrease in the number of migrations to megacities as there is a shift of preference from megacities towards smaller cities.
• Key reasons for this shift include congestion, environmental pollution and higher cost of living in megacities.

Rural-to-urban Migrations

• Rural-to-urban migration continues to dominate the total number of migrations and is because of the abandonment of rural agricultural work and the aspiration of non-farm wage employment in urban areas. It can also be due to seasonal migration.
• Rural people migrate towards urban areas in search of non-farm jobs due to inadequate agricultural incomes and landlessness.

Inter-state and Intra-state Migrations

• There are two types of migrations to megacities, intra-state and interstate.
• Interstate migrations continue to be the most predominant type of migration to megacities. But, it has slightly reduced from 67% in 2001 to 54% in 2011.
• The intra-state migration to the megacities has however increased during the same period.

Female Migrants

• It is learned that more women have migrated to megacities compared to men as the sex ratio of migrants has increased significantly.
• This is mainly because of the improvement in population sex ratio, wider socio-economic development and increase in migration due to marriages.

The trends in the reasons for migration

• In search of employment – employment opportunities continue to be the major reason for migration in India.
• Differences in Rural and Urban Wages – rural-to-urban migration is mainly driven by the current difference between the daily earnings of wage/salaried employees of rural areas and urban areas.
• Expansion of the non-agricultural sectors – the rate of development of the industry and services sectors also drives rural-to-urban migration as it assures employment and higher wages.
• Education – education has traditionally been one of the key reasons for migration and it continues to be.
• Business – in recent times, migration due to business related activities are on the rise due to various reforms which have eased interstate trade.
• Other reasons – Migrations due to marriage, migration after birth, migration with family/households, etc.

Conclusion

The migration trends suggest that rural-to-urban migration continues to dominate. However, there is a change in the trend which shows an increase in the migration towards smaller cities rather than megacities. 

As increased migration towards urban areas affects the overall balance, development and the growth of the country, the policymakers must take up steps to contain the ever increasing rural-to-urban migration by creating non-agricultural jobs in rural areas, reducing the difference in urban-rural wages, extending educational facilities and job opportunities in the rural areas.

Read previous EPW articles in the link.