Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA) is ajob guaranteescheme for rural Indians. It was enacted by legislation on 25 August 2005. The scheme provides a legal guarantee for at least 100 days of paid employment in every financial year to adult members of any household willing to do unskilled manual work related topublic workat the statutoryminimum wageof120(US$1.80) per day in 2009 prices. If they fail to do so the government has to pay the salary at their homes.The central government outlay for the scheme was4000 billion(US$61billion) in financial year 2010–11.

This act was introduced with the aim of improving the purchasing power of semi- or un-skilled rural people of India, irrespective of whether or not they fell below the poverty line. Around one-third of the stipulated work force is women. The law was initially called theNational Rural Employment Guarantee Act(NREGA) and was renamed with the prefix “Mahatma Gandhi” on 2 October 2009, Gandhi’s birth anniversary.

In the year of 2011, the program was commonly criticized as no more effective than other hardship decrease programs in the country of India. Regardless of its finest objectives, popular MGNREGA is beset with debate about damaged authorities, lack funding as the source of resources, low quality of facilities designed under this program, and random dangerous impact on hardship.

SALIENT FEATURES OF THE ACT

The salient features of the Act are as follow:

All adult members of a rural household willing to do unskilled manual work have the right to demand employment.

Such a household will have to apply registration to the Gram Panchayat

After verification, the Gram Panchayat will issue a Job Card with photograph of all adult members of the household willing to work under the programme.

The Job Card must remain in the custody of the household.

Job Cardholder can apply for work to the Gram Panchayat which will issue him/her a dated receipt of the work application

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 and not beyond a fortnight.

Wages will be paid at the wage rate to the wage earners through their Bank/Post office accounts.

An annual shelf of works to be prepared in advance for each year.

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