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.


