"Any state whose minimum wages are below that or close to that (prescribed under MGNREGA), then it is not a problem.
"But if you are a very rich state that can afford very high minimum wages, then Central government reimbursement will be limited," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters.
Under the Mahatma Gandhi National Rural Employment Guarantee Act, a worker is entitled to Rs 100 per day for minimum of 100 days in a year.
Later, it was decided to link the payment to inflation.
As per the revised structure (post linking it to inflation), the wages under MGNREGA will go up between 17 to 30 per cent on the base of Rs 100 for the present, a move that will benefit 5 crore (50 million) people.
However, under the Minimum Wages Act, the wages are fixed by the states and these vary from state to state.
Ahluwalia has said if the minimum wage in state is higher than compensation prescribed under the MGNREGA scheme, the state should bear the additional burden.
"The idea (behind the scheme) was that the Centre will reimburse up to Rs 100 per day (plus additional after linking it with inflation)," he said, adding that problem occurs in those states which have higher minimum wages than what has been specified under the Act.
"Over a period of time, many states have revised their minimum wages upward with some having minimum wages
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