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Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

  • To enhance livelihood security in rural areas by providing at least 100 days of guaranteed demand based wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
  • Beneficiaries are willing rural population, unskilled manual labourers and seasonally unemployed.
  • A 60:40 wage and material ratio has to be maintained.
  • No contractors and machinery is allowed.
  • Wages are linked to Consumer Price Index (Agriculture labour).
  • 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.
  • If work is not provided within 15 days of applying, applicants are entitled to an

unemployment allowance.

  • MGNREGA is to be implemented mainly by gram panchayats.
  • At least one-third beneficiaries shall be women.
  • Social audit has to be done by the gram sabha atleast once in every 6 months.
  • Focuses on creation of durable assets as per local needs.