Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a flagship programme of Government of India. The Act was notified initially in 200 most backward districts of the country w.e.f. February 02, 2006 and subsequently extended all over India. The programme aims at enhancing livelihood security of the rural poor by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.


  • All adult members of a rural household willing to do unskilled manual work have the right t demand employment
  • Such a household will have to apply registration to the Gram Panchayat
  • Employment will be provided by the Gram Panchayat (local self governing body) within 15 days of work application, failing which unemployment allowance will be paid.
  • Disbursement of wages has to be done weekly basis.
  • Wages will be paid at the wage rate to the wage earners through their Bank/Post office accounts.
  • A ratio of 60:40 for wage and material costs should be maintained at GP level.
  • No contractors/and no labour-displacing machinery shall be used in execution of works.
  • Panchayati Raj Institutions will have a principal role in planning, monitoring and implementation
  • At least one-third of the workers should be women.
  • Inbuilt incentive-disincentive structure to the State Government for guaranteeing employment.

Enrollment Process

  • All adult members of a rural household, willing to do unskilled manual work can register for MGNREGA.
  • The registration can be done at the local Gram Panchayat
  • The application would be verified by Gram Panchayat.
  • The Gram Panchayat will issue a Job Card.
  • The job is free of cost.
  • The Job Card should be issued within 15 days of application.

After a job card has been issued the registered household may apply for work.

Facilities to be provided to workers

  • Wages are to be paid on a weekly basis.
  • Safe Drinking water, shades for children, periods of rest and first-aid box
  • A person preferably a woman to tend to children if there are more than five children on a work site. This person will be paid wages in the same way as the other workers on site.
  • In case of accidents during the course of employment at work site, the person is entitled for free medical treatment from the State Government.
  • In case of hospitalisation of the injured labourer, the injured person will get daily allowance at 50% of wage rate
  • In case of death or permanent disability Rs.25, 000 shall be paid to the legal heir of the deceased or to the disabled

Permissible works under MGNREGA

  • Water conservation and water harvesting
  • Drought proofing, afforestation and tree plantation
  • Irrigation canals
  • Irrigation facility to land owned by households of Scheduled Castes and Scheduled Tribes or to land beneficiaries of land reforms or land of the beneficiaries under the Indira Awas Yojana
  • Renovation of traditional water bodies such as desilting of tanks
  • Land development
  • Flood control and protection such as drainage
  • Rural connectivity to  provide  all-weather

« Go back to RBI Grade B homepage