Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS)

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), also known as Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is Indian legislation enacted on August 25, 2005.

The MGNREGA provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage. The Ministry of Rural Development (MRD), Govt of India is monitoring the entire implementation of this scheme in association with state governments.

Mahatma Gandhi Employment Guarantee Act 2005 later renamed as the ‘Mahatma Gandhi National Rural Employment Guarantee Act’ or MGNREGA is an Indian labour law and social security measure that aims to guarantee the ‘right to work’. This act was passed in 23 August 2005 under the UPA government of Prime Minister Dr. Manmohan Singh.

Objective of the MG National Rural Employment Guarantee Act: It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was notified in September, 2005. The Act provides guaranteed 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work at the notified wage rate.

Details of National Rural Employment Guarantee Scheme

• India introduced a national anti-poverty program, now called the Mahatma Gandhi National Rural Employment Guarantee Scheme, which offered up to 100 days of unskilled manual labor per year on public works projects.
• An impact evaluation of the project, however, showed that the program didn’t function the way it was designed to and many people who needed work still didn’t have it, especially in the poorest states – where work was needed most.
• The team further examined results from the state of Bihar, India’s poorest, to better understand why the program was unable to provide work as intended.
• The results helped local policy makers design a new program that improved the ability of local government to provide better and more effective social protection programs.

Objectives of the Act

• Providing not less than one hundred days of unskilled manual work as a guaranteed employment in a financial year to every household in rural areas as per demand, resulting in creation of productive assets of prescribed quality and durability.
• Strengthening the livelihood resource base of the poor.
• Proactively ensuring social inclusion.
• Strengthening Panchayat Raj Institutions.

MGNREGA Goals

• Strong social safety net for the vulnerable groups by providing a fall-back employment source, when other employment alternatives are scarce or inadequate
• Growth engine for sustainable development of an agricultural economy. Through the process of providing employment on works that address causes of chronic poverty such as drought, deforestation and soil erosion, the Act seeks to strengthen the natural resource base of rural livelihood and create durable assets in rural areas. Effectively implemented, MGNREGA has the potential to transform the geography of poverty
• Empowerment of rural poor through the processes of a rights-based Law
• New ways of doing business, as a model of governance reform anchored on the principles of transparency and grass root democracy Thus, MGNREGA fosters conditions for inclusive growth ranging from basic wage security and recharging rural economy to a transformative empowerment process of democracy

Salient Features of the Act

1. Adult members of a rural household, willing to do unskilled manual work, may apply for registration in writing or orally to the local Gram Panchayat
2. The Gram Panchayat after due verification will issue a Job Card. The Job Card will bear the photograph of all adult members of the household willing to work under MGNREGA and is free of cost
3. The Job Card should be issued within 15 days of application.
4. A Job Card holder may submit a written application for employment to the Gram Panchayat, stating the time and duration for which work is sought. The minimum days of employment have to be at least fourteen.
5. The Gram Panchayat will issue a dated receipt of the written application for employment, against which the guarantee of providing employment within 15 days operates
6. Employment will be given within 15 days of application for work, if it is not then daily unemployment allowance as per the Act, has to be paid liability of payment of unemployment allowance is of the States.
7. Work should ordinarily be provided within 5 km radius of the village. In case work is provided beyond 5 km, extra wages of 10% are payable to meet additional transportation and living expenses
8. Wages are to be paid according to the Minimum Wages Act 1948 for agricultural labourers in the State, unless the Centre notifies a wage rate which will not be less than Rs. 60/ per day. Equal wages will be provided to both men and women.
9. Wages are to be paid according to piece rate or daily rate. Disbursement of wages has to be done on weekly basis and not beyond a fortnight in any case
10. At least one-third beneficiaries shall be women who have registered and requested work under the scheme.
11. Work site facilities such as crèche, drinking water, shade have to be provided
12. The shelf of projects for a village will be recommended by the gram sabha and approved by the Zilla panchayat.
13. At least 50% of works will be allotted to Gram Panchayats for execution
14. Permissible works predominantly include water and soil conservation, afforestation and land development works
15. A 60:40 wage and material ratio has to be maintained. No contractors and machinery is allowed
16. The Central Government bears the 100 percent wage cost of unskilled manual labour and 75 percent of the material cost including the wages of skilled and semi-skilled workers
17. Social Audit has to be done by the Gram Sabha
18. Grievance redressal mechanisms have to be put in place for ensuring a responsive implementation process
19. All accounts and records relating to the Scheme should be available for public scrutiny