MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)

Objectives of the Scheme

  • Provide legal guarantee of wage employment to rural households.
  • Strengthen the livelihood resource base of the rural poor.
  • Promote social inclusion of vulnerable and marginalised groups.
  • Strengthen Panchayati Raj Institutions through decentralised planning and execution.

Key Features of MGNREGA

  • Minimum 100 days of unskilled manual wage employment per household per financial year.
  • Employment provided on demand, making the scheme self-targeting.
  • At least one-third beneficiaries must be women.
  • Emphasis on creation of productive and sustainable rural assets.
  • Mandatory social audit by Gram Sabha for transparency and accountability.

Major Amendments (2025): Focus on Water Conservation

  • Rural blocks classified as:
    • Over-exploited
    • Critical
    • Semi-critical
    • Safe
  • Mandatory minimum expenditure on water-related works:
    • 65% in Over-exploited and Critical blocks
    • 40% in Semi-critical blocks
    • 30% in Safe blocks
  • Classification based on the Dynamic Ground Water Resources Assessment.
  • District Programme Coordinator / Programme Officer responsible for ensuring compliance.

Administrative and Financial Structure

  • Launch Year: 2005
  • Type: Centrally Sponsored Scheme
  • Funding Pattern: 60:40 (Centre : States)
  • Nodal Ministry: Ministry of Rural Development
  • Budget Allocation (2025): ₹86,000 crore

Coverage and Eligibility

  • Eligible Beneficiaries:
    • All rural residents above 18 years of age
  • Geographical Coverage:
    • Entire country except districts with 100% urban population

Wage and Employment Provisions

  • Wages indexed to CPI-AL.
  • States/UTs may notify wages higher than central rates.
  • Additional 50 days of employment permitted:
    • In drought or natural calamity-affected notified areas
    • For eligible ST households in forest areas under FRA, 2006
  • States may provide additional employment days from their own funds.

Worker Rights and Safeguards

  • Unemployment allowance if work is not provided.
  • Wages to be paid within 15 days.
  • Delay compensation at 0.05% per day beyond the 16th day after muster roll closure.

Special Focus on Vulnerable Groups

  • Persons with disabilities
  • Primitive Tribal Groups
  • Nomadic and De-notified Tribes
  • Women in special circumstances
  • Senior citizens (above 65 years)
  • HIV-positive persons
  • Internally displaced persons
  • Rehabilitated bonded labour

Implementation Mechanisms and Innovations

  • Wage–material ratio: 60:40 at Gram Panchayat level.
  • Geo-NREGA: Geotagging of assets at pre-, during- and post-creation stages.
  • Project UNNATI: Skill development of workers to facilitate transition to sustainable employment.

Achievements

  • Recognised as the largest employment-based social security programme in the world.
  • Women’s participation increased from 48% in 2014 to 58% in 2025.
  • Significant contribution to rural income stability, asset creation, and climate resilience.
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MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)

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