Odisha's Keonjhar becomes first district to provide minimum wages to all MGNREGA workers

In a bid to secure and improve the living of rural poor and returning migrant workers amid the COVID-19 pandemic, District Mineral Foundation (DMF), Keonjhar has decided to provide 'minimum wages' to all MGNREGA workers in the district. The minimum wage rate will be increased from Rs 207 to Rs 298, which is about 44 per cent rise.

With this decision, Keonjhar district of Odisha becomes the first district in the country to provide minimum wages to all MGNREGA workers, a long-standing demand of leading economists and social activists in the country.

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According to Ashish Thakare, IAS Collector-cum-Chairman & Managing Trustee of DMF, Keonjhar, "The current MGNREGA wage rate of Rs 207 per person per day will be 'topped up' with Rs 91, in order to match the minimum wage rate of Rs 298, notified by Labour & ESI Department, Government of Odisha, by utilizing the funds under District Mineral Foundation (DMF) Trust".

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More than 3.78 lakh active workers to benefit

As per Thakare, if the minimum wage is implemented at a cost of Rs 95 crore under DMF during FY 2020-21, more than 3.78 lakh active workers in Keonjhar are expected to directly benefit from the initiative. A rural household in the district that completes 100 days of wage employment will now be able to earn as much as Rs 29,800 a year, under MGNREGA.

Set up under the Mines and Minerals (Development and Regulation) Amendment (MMDRA) Act, 2015, with a mandate to alleviate poverty and improve human development indicators in mining areas, DMF Trusts across the country have cumulatively accrued close to Rs 36,000 crore so far. Endowed with rich iron-ore and manganese deposits, Keonjhar is the largest DMF district in the entire country.

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(With inputs from ANI)