What is NREGA?

In September 2005, the Government of India enacted the National Rural Employment Guarantee Act (NREGA), marking a significant step towards alleviating rural poverty and unemployment. This landmark legislation laid the foundation for the National Rural Employment Guarantee Scheme (NREGS), the government’s flagship rural employment initiative.

NREGS guarantees a minimum of 100 days of paid employment per financial year to unskilled rural laborers, ensuring a steady income source for millions of households across India.

The program is designed to promote inclusive growth by providing employment opportunities in rural areas and contributing to the development of rural infrastructure through projects like road construction, water conservation, and afforestation.

For regions affected by droughts or other natural calamities, the Act includes a special provision to increase the employment guarantee by an additional 50 days, raising the total to 150 days of unskilled wage employment per financial year. This safety net is crucial for protecting vulnerable populations in disaster-prone areas, offering a means of financial resilience during periods of economic hardship. In addition to promoting financial security, the scheme empowers rural communities by ensuring gender equity, as it mandates that at least one-third of the beneficiaries must be women.

Moreover, NREGA has a decentralized structure, giving local governing bodies, such as Gram Panchayats, the authority to plan and implement the scheme according to the specific needs of their communities. This grassroots-level involvement strengthens local governance and ensures that employment generation is tailored to local requirements, fostering greater accountability and transparency. By providing both economic stability and promoting sustainable rural development, NREGA remains a cornerstone in India’s efforts to reduce poverty and enhance the livelihoods of its rural population.

While the law was earlier named NREGA, the name was changed to MGNREGA after an amendment to the National Rural Employment Guarantee Act, 2005, on October 2, 2009.

The ministry of rural development monitors the implementation of the MGNREGA, along with state governments.

Table of Contents

NREGA: Main facts

Name of the schemeNREGS (National Rural Employment Guarantee Scheme)
Applicable lawNREGA or MGNREGA
Name changed to MGNREGAOctober 2, 2009
Official websitehttps://nrega.nic.in/
ObjectivesProviding at least 100 days of unskilled manual work as guaranteed employment in a financial year to every household in rural areas.Strengthening the livelihood base of the poor.Ensuring social inclusion.Strengthening Panchayati Raj institutions.
Passed by ParliamentAugust 23, 2005
Came into forceSeptember 7, 2006
Implementing authorityUnion Ministry of Rural Development and state governments
CoverageAll rural areas in India

NREGA objective

The primary goal of the scheme is to offer an additional source of income to unskilled and semi-skilled adult members of rural households in India, particularly targeting the landless labor force and those living below the poverty line. By providing employment opportunities, the scheme aims to alleviate poverty, reduce economic vulnerability, and enhance the quality of life for marginalized communities. It is designed to support individuals who lack formal education or specialized skills by creating work opportunities in sectors such as agriculture, infrastructure development, and rural public services. In doing so, the scheme not only addresses immediate financial needs but also contributes to the long-term development of rural areas by improving local infrastructure and promoting sustainable livelihoods. By empowering rural households, it helps bridge the urban-rural economic divide and fosters inclusive growth across the nation. Additionally, it provides a safety net during agricultural off-seasons, ensuring a steady income flow throughout the year, which is crucial for communities heavily dependent on seasonal work.

Difference between NREGA and NREGS

NREGANREGS
Is the law governing NREGSScheme launched under the NREGA law
Governed by the centreTo be governed under the central law by state governments
Can be amended by the central governmentCan be amended by state governments
Notified on September 7, 2005States notified NREGS rules within a year after September 7, 2005
Prescribes rulesPrescribes implementation

NREGA registration and NREGA job card

To secure employment under the NREGA (National Rural Employment Guarantee Act) scheme, all adult members of a household must approach their local gram panchayat and submit the necessary details for NREGA registration. Once registered, eligible individuals are issued NREGA job cards, which serve as identification for accessing work opportunities under the scheme. These job cards are linked to the cardholder’s Aadhaar number and bank account, ensuring direct transfers of wages and reducing the chances of fraud.

After receiving the NREGA job card, a worker can apply for at least 14 consecutive days of employment by submitting a formal request to the gram panchayat. The gram panchayat is responsible for providing work within a five-kilometre radius of the worker’s residence. If the assigned job is located beyond this distance, the worker is entitled to an additional allowance to cover travel expenses, ensuring that the scheme remains fair and accessible.

The scheme guarantees that work will be provided within 15 days of the application. If the gram panchayat fails to do so, the worker is eligible for unemployment benefits as compensation. The employment offered typically involves unskilled manual labour, ranging from construction and maintenance of rural infrastructure to watershed management and conservation efforts. NREGA also prioritizes social inclusion by ensuring that women and marginalized groups are equally represented in the workforce.

By offering secure employment and fair wages, the NREGA scheme aims to alleviate rural poverty, promote economic empowerment, and create sustainable rural development through infrastructural improvements and environmental conservation projects.

Rights of NREGA cardholders

Application Process and Worker Entitlements

  1. Application for Registration: Every eligible individual must apply for registration to participate in the employment scheme. This application is crucial for gaining access to job opportunities and receiving the benefits guaranteed under the scheme.
  2. Obtaining a Job Card: After successful registration, individuals receive a job card, which serves as proof of their eligibility to work under the scheme. The job card includes vital details about the worker and is required to secure employment.
  3. Dated Receipt for Application: Upon applying for work, the applicant must obtain a dated receipt. This serves as a record of the application and is essential for tracking the timeline of the job request.
  4. Guaranteed Employment: Workers are entitled to receive employment within 15 days of submitting their application, or from the date they have sought work, whichever is later. If the application was made in advance, the clock starts ticking from the date work was requested.
  5. Choice of Work Duration: Workers have the right to choose the duration and timing of their work. This flexibility allows individuals to tailor their working hours to personal circumstances, enhancing accessibility for all eligible participants.
  6. Worksite Amenities: Basic facilities such as drinking water, crèche services for workers with children, and first aid provisions must be available at the worksite. These amenities are essential to ensure the safety, health, and well-being of workers.
  7. Additional Wage for Distance: If the worksite is located more than five kilometers from the worker’s residence, they are entitled to a 10% extra wage. This provision compensates for the additional time and cost of commuting.
  8. Access to Employment Records: Workers have the right to check their muster rolls, which record attendance and work details. This ensures transparency and helps workers verify the accuracy of their employment information.
  9. Timely Payment: Wages must be paid on a weekly basis and no later than 15 days after the work is completed. Delays in payment must be addressed promptly to prevent financial hardship for workers.
  10. Unemployment Allowance: If the authorities fail to provide work within 15 days of receiving a valid application, the worker is entitled to an unemployment allowance. This safeguard ensures financial support when work is unavailable.
  11. Compensation for Delayed Payments: If wages are not paid within the stipulated time, workers are entitled to compensation at a rate of 0.05% of the unpaid wages per day, starting from the 16th day after the closure of the muster roll. This discourages payment delays and ensures workers are compensated for their labor.
  12. Medical Coverage for Workplace Injuries: In the event of an injury sustained during employment, workers are entitled to medical treatment, including hospitalization if necessary. Additionally, in cases of death or permanent disability resulting from workplace accidents, an ex-gratia payment will be provided to the worker or their family as compensation.

These entitlements aim to safeguard workers’ rights and ensure that they are treated with fairness and dignity in all aspects of their employment under the scheme.

Type of works under NREGA

Water harvesting and conservation structures play a crucial role in sustaining water resources and ensuring agricultural productivity. These include various forms of dams such as earthen dams, stop dams, and check dams, as well as underground dykes that help in recharging groundwater levels. Watershed management techniques like contour trenches, bunds, terracing, boulder checks, gabion structures, and spring shed development further aid in preventing soil erosion and ensuring water retention in hilly and sloped regions.

Micro and minor irrigation works are essential for efficient water distribution, ensuring that crops receive adequate moisture even in areas with limited rainfall. Alongside these, the creation, maintenance, and renovation of drains and irrigation canals improve water flow and accessibility, contributing to enhanced agricultural yield. Renovation of traditional water bodies also plays a vital role in reviving local ecosystems and supporting water needs for both irrigation and domestic purposes.

Afforestation, tree plantation, and horticulture efforts contribute to environmental conservation and create additional livelihoods for rural communities. Land development works on common land help in transforming unproductive areas into fertile plots, while enhancing the productivity of household lands through improved farming techniques increases food security and income generation.

Livelihood improvements extend beyond farming, encompassing horticulture, plantation farming, farm forestry, and sericulture, providing sustainable income sources. Development of waste and fallow lands not only restores ecological balance but also promotes diversified income opportunities for households. Livestock infrastructure, such as poultry, goat, piggery, and cattle shelters, along with fodder troughs, ensures better livestock management and enhances rural livelihoods.

Additionally, infrastructure for fisheries, such as fish drying yards, storage facilities, and promotion of seasonal fisheries, contributes to the economic empowerment of fishing communities. To further boost agricultural productivity, the creation of durable infrastructure for bio-fertilisers, post-harvest facilities, and pucca storage units for agricultural produce is essential. Common work sheds support livelihood activities for self-help groups, providing them with spaces to engage in income-generating activities.

Rural sanitation is another important focus area, with works involving the construction of individual household latrines, school toilet units, and anganwadi toilets to improve hygiene and public health. Construction of all-weather rural roads ensures year-round connectivity, enhancing access to markets, healthcare, and education. Playfields provide spaces for community recreation and physical development, contributing to the well-being of rural youth.

Improving disaster preparedness is critical, with works like restoring roads, repairing essential public infrastructure, flood control measures, deepening and repairing flood channels, and constructing stormwater drains for coastal protection. This ensures that rural communities are better equipped to handle natural disasters. Other infrastructure works include the construction of buildings for gram panchayats, self-help groups, cyclone shelters, anganwadi centres, village markets (haats), and crematoria, creating essential community facilities.

Storage structures for foodgrains help prevent post-harvest losses, while the production of building materials supports local construction needs. Maintenance of rural public assets ensures the longevity and utility of these infrastructures, contributing to the overall development and resilience of rural areas. Finally, any other works notified by the central government further expand the scope for improving rural livelihoods and infrastructure.

NREGA payment

Under the National Rural Employment Guarantee Act (NREGA), payments are typically deposited directly into the bank or post office accounts of registered NREGA cardholders. This ensures greater transparency and minimizes the risk of fraud or mismanagement of funds. However, in areas where banking infrastructure is underdeveloped or inaccessible, alternative arrangements are made, and payments can be disbursed in cash. This is often the case in remote rural areas where access to financial institutions, ATMs, or digital banking services is limited. While cash payments provide flexibility in such regions, they can pose challenges related to accountability, security, and delays in distribution. To address these concerns, there is a growing focus on expanding banking services, including the establishment of bank correspondents, mobile banking units, and other outreach initiatives to bring financial services closer to underserved communities. These efforts aim to improve payment efficiency and ensure that all beneficiaries receive their dues in a timely and secure manner.

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NREGA wage rate 2024

On March 28, 2024, the Central Government officially announced the new wage rates under the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) for the fiscal year 2024-25. These revised wage rates came into effect from April 1, 2024. The increase in NREGA wages this year ranges between 2% and 10%, similar to the hike implemented during the previous fiscal year. The average wage increase across the country is approximately ₹28 per day, bringing the daily wage for workers under the scheme to an average of ₹289, up from ₹261 in FY 2023-24.

This adjustment in wages is crucial for rural workers who rely on the employment guarantee scheme for livelihood support, especially in the face of inflation and rising living costs. NREGA, aimed at enhancing livelihood security in rural areas, has been a lifeline for millions of workers, particularly during times of economic downturn. The wage hike, though modest, is expected to provide some relief to workers by improving their purchasing power, enabling them to meet basic needs like food and healthcare more effectively. However, challenges remain regarding the timely disbursement of wages and the adequacy of the increase in comparison to rising inflation rates, which some experts argue could undermine the full impact of the wage hike. Additionally, the wage variation across states highlights the ongoing disparity in rural incomes, with higher-paying states offering a significantly better rate than the national average.

State-wise NREGA wage list 2024

MNREGA wage list FY25

Name of state/Union territoryWage rate per day for FY25
Andhra PradeshRs 300
Arunachal PradeshRs 234
AssamRs 249
BiharRs 245
ChhattisgarhRs 244
GoaRs 356
GujaratRs 280
HaryanaRs 374
Himachal PradeshNon-scheduled areas – Rs 236Scheduled areas – Rs 295
Jammu and KashmirRs 259
LadakhRs 259
JharkhandRs 245
KarnatakaRs 349
KeralaRs 346
Madhya PradeshRs 243
MaharashtraRs 297
ManipurRs 272
MeghalayaRs 254
MizoramRs 266
NagalandRs 234
OdishaRs 254
PunjabRs 322
RajasthanRs 266
SikkimSikkim(Three Gram Panchayats named Gnathang, Lachung and LachenRs 249 Rs 374
Tamil NaduRs 319
TelanganaRs 300
TripuraRs 242
Uttar PradeshRs 237
UttarakhandRs 237
West BengalRs 250
Andaman and NicobarAndaman District – Rs 329Nicobar District – Rs 347
Dadra and Nagar Haveli and Daman and DiuRs 324
LakshadweepRs 315
PuducherryRs 319

NREGA wage rate 2022

StateNREGA wages in 2021-22 (Rs)NREGA wages in 2022-23 (Rs)Absolute change (Rs)
Andaman and Nicobar Islands29430814
Andhra Pradesh24525712
Assam2242295
Arunachal Pradesh2122164
Bihar19821012
Chhattisgarh19320411
Dadra and Nagar Haveli2692789
Daman and Diu2692789
Goa29431521
Gujarat22923010
Haryana31533116
Himachal Pradesh25426612
J&K21422713
Jharkhand19821012
Karnataka28931120
Kerala29131120
Lakshadweep26628418
Madhya Pradesh19320411
Maharashtra2842568
Manipur291291No change
Meghalaya2262304
Mizoram233233No change
Nagaland2122164
Odisha2152227
Puducherry2732818
Punjab26928213
Rajasthan22123110
Sikkim21222210
Tamil Nadu2732818
Telangana24525712
Tripura212212No change
Uttar Pradesh2042139
Uttarakhand2042139
West Bengal21322310

Compensation for delay in NREGA payment

Under the National Rural Employment Guarantee Scheme (NREGS), it is mandated that wages must be disbursed on a weekly basis, and no later than 14 days (a fortnight) from the completion of the assigned work. If payments are delayed beyond this period, workers employed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) are entitled to compensation. Specifically, they can claim compensation at a rate of 0.05% of the unpaid wages per day for every day of delay beyond the 16th day following the completion of work. This provision aims to ensure timely payment to the labor force and protect their financial security, particularly in rural areas where MGNREGA plays a crucial role in sustaining livelihoods. Delays in payment not only affect the workers but also undermine the effectiveness of the scheme.

Latest NREGA News:
In recent updates, there has been growing concern about delays in wage payments under NREGS in several states, prompting the central government to tighten oversight mechanisms. Additionally, some states have introduced digital platforms for tracking work progress and payment disbursement to minimize delays. Recent government initiatives are also focusing on expanding the scope of MGNREGA to include skill development, ensuring that the rural workforce not only earns wages but also builds long-term employability skills.

85.64 lakh NREGA job cards deleted this fiscal so far: Govt

As of February 7, 2024, a total of 85.64 lakh NREGA job cards have been deleted in the current financial year for a variety of reasons, as stated by Minister of State for Rural Development, Sadhvi Niranjan Jyoti, in a written reply to the Lok Sabha on February 6. These job cards were removed from the list of eligible beneficiaries due to multiple factors, including cases where the cards were found to be either fake or inaccurate, families were unwilling to continue working under the scheme, beneficiaries had permanently relocated from the gram panchayat, or the death of the beneficiaries occurred. The minister emphasized that the deletions are part of routine maintenance to ensure the authenticity and accuracy of the list of eligible workers.

In addition to this, as of February 1, 2024, a total of 311.19 lakh NREGA job cards have been deleted under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) since April 2022. The large-scale removal of job cards aims to streamline the scheme, ensuring that resources are allocated to those who genuinely qualify for and require employment support under NREGA. The minister also pointed out that ongoing efforts are being made to improve the scheme’s transparency and efficiency through regular audits and technological interventions, including the use of data analytics and geo-tagging of worksites to curb discrepancies and prevent fraudulent entries.

14.37 cr active beneficiaries under Nrega

On December 12, 2023, government data revealed that there are 14.37 crore active beneficiaries under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the government’s flagship employment guarantee scheme. This data was presented in a written reply by the Minister of Rural Development, Giriraj Singh, in the Lok Sabha. The minister highlighted that there has been a significant increase in the number of person-days generated under the scheme compared to the previous year, reflecting a rising demand for rural employment.

As of November 30, 2023, a total of 221.60 crore person-days had been generated, which is higher than the 208.74 crore person-days recorded during the same period in the last financial year. This uptick indicates the government’s continued focus on supporting rural livelihoods amid economic challenges. MGNREGA, being demand-driven, has responded to the needs of rural workers by providing wage employment through labor-intensive projects, such as road construction, water conservation, and afforestation efforts. The scheme plays a vital role in mitigating rural distress, particularly in regions facing agricultural slowdowns or adverse weather conditions, offering a safety net for millions of families across India.

Furthermore, the government has been enhancing its monitoring mechanisms and incorporating technology-driven solutions, such as real-time attendance monitoring and geotagging of projects, to ensure greater transparency and reduce delays in wage payments. This increase in person-days underscores the importance of MGNREGA in alleviating rural poverty and fostering economic resilience, particularly for marginalized communities.

No deficit of funds under NREGA: Govt

On October 23, 2023, Rural Development and Panchayati Raj Minister Giriraj Singh reiterated that there is no shortage of funds under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Addressing the media on October 20 to highlight the ministry’s achievements over the past nine years, Singh emphasized the government’s commitment to ensuring financial support for the scheme. He revealed that while the Ministry of Finance has been approached for additional funds to meet future demands, the funds are expected to be sanctioned soon.

Singh highlighted the significant impact of MGNREGS, reporting that over the past nine years, a total of 2,644 crore person-days of work have been generated, offering employment opportunities to millions across rural India. He also mentioned that more than Rs 6.63 lakh crore has been released as the Central share for the scheme, ensuring steady wages for rural laborers. The minister underscored the scheme’s role in empowering rural communities, promoting economic stability, and supporting infrastructure development in some of the most remote areas of the country.

Additionally, Singh spoke about the scheme’s future, mentioning that the government is focused on improving transparency and accountability through measures like digital payments and real-time tracking of work projects. He assured that MGNREGS would continue to play a pivotal role in enhancing livelihoods and fostering rural development across India.

Nearly Rs 56,106 cr released under NREGA in this fiscal so far: Govt

As of October 6, 2023, the government has disbursed approximately Rs 56,106 crore under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the current financial year (FY24), according to official data. This comes in comparison to the budget estimate for FY24, which stands at Rs 60,000 crore for the Centre’s flagship employment guarantee program. In the previous fiscal year, Rs 90,810 crore was released under MGNREGS, slightly exceeding the revised budget estimate of Rs 89,400 crore. Notably, the highest level of disbursement under the scheme occurred during FY21, when Rs 1,11,171 crore was released, largely driven by increased demand during the COVID-19 pandemic.

MGNREGS, a demand-driven scheme, has played a critical role in providing livelihood security to millions of rural households by ensuring at least 100 days of wage employment per year. However, the increasing financial burden on the government has raised concerns about its long-term sustainability, with some experts suggesting reforms to improve efficiency and transparency in fund allocation. Despite these challenges, the scheme remains a vital safety net for rural India, especially in times of economic distress. The continued high levels of funding highlight the government’s commitment to supporting rural employment and combating poverty in the face of fluctuating economic conditions.

NREGA attendance app modified to offer workers more ease: Govt

On August 9, 2023, the government announced modifications to the mobile application used for recording the attendance of NREGA (National Rural Employment Guarantee Act) workers, Union Minister of State for Rural Development, Sadhvi Niranjan Jyoti, revealed in a written reply to the Lok Sabha.

In a detailed statement issued on August 8, the minister explained that the NMMS (National Mobile Monitoring System) app had been updated to enhance the transparency and accuracy of attendance records. A significant change was the addition of a feature to capture a second photograph of workers after four hours of uploading the initial attendance and first photograph. This ensures that workers’ presence is verified throughout their workday, reducing the chances of discrepancies or misuse.

The new system also provides greater flexibility in attendance recording. The morning attendance, along with the first and second photographs, can now be captured in offline mode, allowing it to be uploaded later once the device is connected to a network. This is especially useful in rural areas with intermittent or poor network connectivity. Moreover, to address any exceptional circumstances where attendance could not be uploaded due to technical or logistical issues, the district programme coordinator has been granted the authority to upload manual attendance. This modification aims to streamline the attendance process while ensuring greater accountability in the implementation of the NREGA scheme.

No NREGA workers denied wage due to Aadhaar-based payment system: Govt

On August 2, 2023, the Ministry of Rural Development clarified that no worker under the Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGS) had been denied wage payments due to the Aadhaar-based payment system (ABPS). The ministry emphasized that the implementation of ABPS was aimed at addressing several challenges, including delays caused by frequent changes in bank account details by beneficiaries, which were not always updated by program officers in a timely manner.

“To ensure the prompt disbursal of wages to beneficiaries under the Mahatma Gandhi NREGS and to resolve issues arising from the constant changes in beneficiaries’ bank account numbers, the decision was made to adopt the Aadhaar-Based Payment System (ABPS). This system remains unaffected by changes in bank accounts and ensures that only genuine beneficiaries receive the scheme’s benefits,” the ministry stated.

The introduction of ABPS aims not only to streamline payments but also to strengthen transparency and accountability within the NREGS. By linking payments directly to Aadhaar, the system reduces the risk of fraud or wrongful disbursements, ensuring that resources are directed to eligible workers. The ministry reiterated that this shift was necessary for the efficiency and integrity of the scheme, particularly given the scale of the program and the large number of workers dependent on timely wage payments.

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Mixed payment mode for NREGA till August 31: Govt

The Centre has opted for a mixed model for wage payments under the Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGS), extending the deadline for mandatory adoption of the Aadhaar-based payment system until August 31, 2023. This decision, communicated by the Ministry of Agriculture through social media platforms, comes in response to multiple requests from states seeking additional time for the transition. The extension marks the fourth such delay, reflecting the challenges some regions face in fully implementing the Aadhaar-based system.

States have raised concerns about technical difficulties, limited infrastructure, and accessibility issues in rural areas, which have slowed the pace of integration. By allowing both Aadhaar and non-Aadhaar-based payment systems to coexist for a longer period, the government aims to ensure that beneficiaries continue receiving their wages without interruption. At the same time, it underscores the Centre’s commitment to eventually achieving a more secure, streamlined, and transparent payment mechanism through Aadhaar. This extended deadline is seen as a balance between maintaining the integrity of the scheme and addressing ground-level realities in rural India.

Use 70% NREGA funds in water-deficient blocks: Govt panel

On June 21, 2023, a committee appointed by the Ministry of Rural Development in October 2022 put forward significant recommendations for the National Rural Employment Guarantee Act (NREGA), according to *The Economic Times*. The panel suggested a comprehensive reform of the NREGA, advocating for a stronger emphasis on asset creation, particularly in India’s most impoverished regions. Specifically, the committee identified 2,500 water-scarce blocks and 1,000 poverty-stricken blocks out of the nation’s total 7,245 blocks as priority areas for these efforts. The proposed changes aim to shift NREGA’s focus from merely generating short-term employment to fostering long-term economic sustainability through infrastructure and resource development in these underdeveloped areas. The panel highlighted that linking job creation with tangible assets, such as irrigation projects, roads, and other community resources, could not only provide immediate relief through employment but also address the root causes of poverty and underdevelopment. These reforms are expected to strengthen rural economies, improve resource management, and ensure that government investments lead to durable benefits for the communities most in need. The proposed overhaul reflects the government’s broader push to align rural employment schemes with sustainable development goals and long-term asset-building in the country’s most vulnerable areas.

Mixed payment mode for NREGA to continue till June 30: Govt

The Centre has opted for a mixed model of wage payment under the Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGS), granting an extension for the transition to the Aadhaar-based payment system until June 30, 2023. This decision comes in response to requests from various state governments, which expressed concerns over logistical challenges in implementing the new system by the original deadline of March 31, 2023. The extension aims to ensure a smoother transition and prevent disruptions in wage disbursement to rural workers. By adopting a mixed model, the Centre seeks to balance the use of traditional payment methods with the Aadhaar-based system, allowing for greater flexibility and addressing issues related to Aadhaar enrollment and linkage in remote areas. This approach also considers the need to protect workers’ access to timely payments while gradually introducing a more secure and streamlined mechanism. Additionally, the extension provides states with more time to ensure that infrastructure and awareness campaigns around Aadhaar usage are adequately implemented, reducing the risk of delays or wage discrepancies during the transition.

Demand for NREGA increases in May: Official data

In May 2023, approximately 31.74 million households sought employment under the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA), marking the highest demand for work in any May since the program’s inception, excluding the exceptional surge during the Covid-19 pandemic, according to official data. Despite this significant demand, only 22.3 million households were provided with work during the month, highlighting a gap in job allocation under the scheme. Comparatively, in April 2023, the demand for work was lower, with around 24.06 million households seeking employment. This substantial rise in demand between April and May reflects mounting pressure on rural employment programs, possibly driven by economic challenges, seasonal factors, or inflationary pressures affecting rural communities. The discrepancy between demand and the provision of work underlines ongoing challenges in the implementation and capacity of the NREGA to meet the employment needs of rural households. Factors such as delayed fund disbursement, administrative bottlenecks, and resource constraints continue to affect the scheme’s ability to fully address the employment crisis in rural areas, underscoring the need for policy adjustments to ensure that all those seeking work are accommodated.

Govt to conduct social audit of Amrit Sarovars built using NREGA funds

On May 18, 2023, the government announced the deployment of a social audit team to assess the Amrit Sarovars, which were either constructed or rejuvenated using MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) funds. This move was revealed in a statement by the Ministry of Rural Development on May 17, 2023. The decision to send audit teams was made during a high-level meeting aimed at reviewing the mission’s progress, ensuring the quality of the projects, and monitoring ongoing efforts.

The Amrit Sarovar Mission, which seeks to address the country’s water scarcity challenges, was launched by Prime Minister Narendra Modi on April 24, 2022. Its objective is to build or rejuvenate 75 water bodies in every district across India, symbolizing the 75th year of the country’s independence. The initiative is intended to enhance water conservation, provide better water management, and contribute to rural livelihood opportunities under MGNREGA. By May 2023, the programme had already surpassed a significant milestone, achieving the national target of creating or reviving 50,000 water bodies.

The mission emphasizes community participation, encouraging local bodies and rural communities to take ownership of these water resources. It also focuses on sustainability and long-term benefits, aiming to support agriculture, enhance groundwater levels, and improve access to clean water in rural areas. The upcoming social audit is expected to provide insights into the efficacy of the programme and identify areas for improvement, ensuring that the project’s goals are met effectively across all districts.

Kerala launches welfare board to provide pension to NREGA workers

On May 15, 2023, the Kerala government took a significant step towards enhancing the social security of workers registered under the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) by launching the Kerala Welfare Fund Board. This newly established board is designed to provide a comprehensive range of benefits to NREGA workers. Once workers reach the age of 60, they will be eligible to receive a monthly pension, ensuring financial stability in their later years. In addition to the pension, the board will offer various forms of financial assistance, covering essential aspects of workers’ lives such as medical treatment, education, marriage, and other social needs.

The introduction of this welfare fund board marks a progressive move by the Kerala government to recognize and support the contributions of rural workers, who often lack adequate social safety nets. By extending these benefits, the government aims to improve the overall quality of life for NREGA workers and their families, ensuring they receive not just immediate employment but also long-term welfare support. This initiative reflects Kerala’s ongoing commitment to worker welfare and its broader objective of fostering inclusive growth and social equity across the state.

NREGA workers may get text message confirming attendance

On May 8, 2023, The Hindu reported that the Ministry of Rural Development is exploring a proposal to implement an SMS-based confirmation system for NREGA workers, which would notify them of their attendance at the end of each workday or upon the completion of a work schedule. This initiative aims to increase transparency and accountability in attendance tracking. Since January 2023, the government has mandated mobile-based attendance for all NREGA workers, except those involved in individual beneficiary schemes and projects, using the National Mobile Monitoring System (NMMS) app.

Under this system, worksite supervisors are responsible for capturing the attendance of workers, accompanied by geo-tagged photographs, to ensure that the records are accurate and verifiable. This digital move is part of a broader effort to reduce irregularities in wage distribution and ensure that payments are made only to those who are physically present and working. The integration of real-time data collection through geo-tagged images also helps in curbing the manipulation of records and ensuring that resources allocated under NREGA are utilized effectively.

In addition to providing daily confirmations, the SMS-based system is expected to empower workers by keeping them informed about their attendance records, reducing discrepancies, and giving them a means to raise concerns if any issues arise. This step reflects the government’s commitment to improving the efficiency and transparency of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and enhancing worker trust in the system.

Govt may not roll back app-based attendance for NREGA workers

The government appears unlikely to reverse the implementation of the app-based attendance system for NREGA (National Rural Employment Guarantee Act) workers, as suggested by a notification issued by the Ministry of Rural Development on March 29, 2023. Since January 1, 2023, the Centre has mandated the use of mobile-based attendance tracking for all NREGA workers through the National Mobile Monitoring System (NMMS) app, which aims to improve transparency and accountability in the program. This digital shift, however, has sparked concerns among workers and labor activists, citing challenges such as inadequate smartphone access in rural areas and poor network connectivity that could hinder the smooth implementation of the system.

Addressing these concerns, Minister of State for Rural Development Niranjan Jyoti, in a written reply to the Rajya Sabha on the same date, emphasized that all issues related to the NMMS application are regularly reviewed and addressed. Despite the government’s efforts to resolve technical glitches and accessibility problems, critics argue that the app-based system could exclude vulnerable workers, especially women and the elderly, who may lack access to the necessary technology. The ministry’s continued commitment to the app, however, signals its focus on digital governance as a means to curb irregularities in NREGA implementation, although the on-ground impact of this shift remains a point of debate.

Govt hikes NREGA wage rate for FY24

The government has announced an increase in wages under its flagship National Rural Employment Guarantee Act (NREGA) scheme for the financial year 2023-24, according to a report by news agency PTI. The revised wages, set to take effect from April 1, 2023, will see monthly hikes ranging from Rs 7 to Rs 26, translating to an increase of 2% to 10% depending on the state. This adjustment is aimed at providing greater financial support to rural laborers across India, who rely on NREGA for guaranteed employment and income stability.

According to the updated wage structure, NREGA workers in Haryana will receive the highest daily wage at Rs 357, reflecting the state’s higher cost of living and labor demands. In contrast, Madhya Pradesh and Chhattisgarh have been allocated the lowest daily wage of Rs 221, highlighting regional disparities in wage allocation under the scheme.

The increase in wages is expected to have a significant impact on rural households, many of which are dependent on NREGA wages for their livelihood. Additionally, the wage hike comes at a time when inflationary pressures on essential goods and services have been affecting the purchasing power of rural populations. By enhancing wages, the government aims to cushion the financial strain on rural workers and boost the rural economy by improving household incomes and increasing consumer spending.

NREGA continues to play a vital role in India’s social security framework, ensuring employment opportunities for millions, particularly during times of economic slowdown and agricultural distress. The wage revisions are part of ongoing efforts to make the scheme more responsive to changing economic conditions and the evolving needs of rural communities.

Mixed payment mode for NREGA to continue till March

The Centre has opted for a mixed model of wage payment under the Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGS), which will remain in effect until March 31, 2023. This decision was made in response to requests from various states seeking flexibility in the payment structure to accommodate local needs and administrative challenges. The mixed model allows for both direct benefit transfers (DBT) to workers’ bank accounts as well as cash payments in certain regions where banking infrastructure is inadequate or inaccessible. The government believes this approach will ensure that wages reach beneficiaries in a timely manner, even in remote areas, and help streamline the implementation of the scheme. By addressing the concerns of states, the Centre aims to maintain the smooth functioning of NREGS, which is a crucial lifeline for rural employment and poverty alleviation. This decision also aligns with ongoing efforts to strengthen financial inclusion while acknowledging on-the-ground realities.

5.97 cr households asked for work so far under NREGA in FY23

As of March 9, 2023, official data reveals that a total of 5.97 crore households have accessed employment under the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) during the financial year 2022-23. This reflects a substantial demand for the scheme, which continues to be a lifeline for rural households across India by providing them with guaranteed work opportunities. In comparison, during the previous fiscal year 2021-22, a total of 7.25 crore households benefitted from the scheme, indicating a decline in participation this year. This reduction could be attributed to various factors such as improvements in rural employment rates outside the scheme, changes in funding allocation, or regional variations in the demand for work. However, NREGA remains a crucial component of India’s social safety net, especially during economic downturns, agricultural off-seasons, and natural calamities, when rural employment opportunities diminish. The scheme not only supports rural livelihoods but also contributes to infrastructure development and environmental conservation in rural areas by focusing on projects such as water conservation, irrigation facilities, and road construction.

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Bihar cancels 39.36 lakh NREGA job cards

In February 2023, the Bihar government’s Rural Development Ministry took the significant step of cancelling 39.36 lakh job cards under the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA). These cancellations targeted laborers who had been classified as inactive, as they had not worked a single day under the scheme for the past three years, yet were still receiving wages. This action was prompted after discrepancies were found between the Aadhaar cards and job cards of these beneficiaries, leading to concerns over misuse and misallocation of funds. The initiative aimed to improve the transparency and efficiency of the Central government’s job guarantee scheme.

The highest number of cancellations were reported from key districts including Patna, Vaishali, Samastipur, Bhagalpur, Bhojpur, and Darbhanga. This move is part of a broader effort to streamline the implementation of NREGA, ensuring that only eligible and active workers benefit from the program. The government is now focused on weeding out irregularities, enforcing stricter monitoring mechanisms, and reissuing job cards to genuine beneficiaries. Such efforts are critical in improving the integrity of welfare schemes and ensuring resources are directed towards those who need them most, particularly in the rural areas where livelihood opportunities remain limited. Additionally, the ministry plans to introduce more technological solutions, like biometric verification, to further reduce fraud and enhance the transparency of future allocations.

Actual NREGA fund releases more than that Budget Estimate: Govt

On February 3, 2023, the central government reaffirmed its commitment to ensuring the timely release of funds for the effective implementation of the National Rural Employment Guarantee Act (NREGA) scheme. Addressing concerns over the perceived reduction in Budget allocation for NREGA in the Union Budget 2023-24, the Ministry of Rural Development issued clarifications, assuring that additional funds would be allocated to the scheme as and when necessary to meet the demands for wage payments and other associated expenses.

The ministry highlighted that, in practice, the actual releases to states for NREGA have consistently been higher than the amounts initially provided for in the Budget Estimate (BE). This reflects the government’s responsiveness to the dynamic requirements of the scheme, which plays a crucial role in providing livelihood security to millions of rural households. The government reiterated its commitment to ensuring that funds for wage and material payments under NREGA are disbursed promptly, thereby supporting rural employment and infrastructure development across the country. Moreover, the ministry emphasized that the allocation process is flexible, allowing for adjustments to meet the program’s evolving financial needs throughout the fiscal year, ensuring uninterrupted implementation.

NREGA fund release in previous years

MNREGA demand-driven scheme, getting sufficient funds: Minister

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a demand-driven program designed to ensure rural employment, and the government has consistently provided adequate funds to support it, according to Rural Development Minister Giriraj Singh. Speaking on February 9, 2023, Singh emphasized that critics of the program’s budget allocation misunderstand its nature. “Those criticizing the Budget allocation should first understand what MGNREGA entails before claiming the allocation has decreased. In 2020, for instance, the initial allocation was Rs 62,000 crore, but actual expenditure reached Rs 1,12,000 crore,” he explained. Singh further highlighted that the annual budget allocation for MGNREGA has typically hovered around Rs 70,000 crore.

In the Union Budget for 2023-24, the scheme has been allocated Rs 60,000 crore, which is a reduction from the Rs 73,000 crore allocated in 2022-23. However, Singh pointed out that the expenditure in 2022-23, based on the Revised Estimate, amounted to Rs 89,400 crore, illustrating that the program’s funding responds dynamically to demand. He reiterated that the government remains committed to providing additional funds if necessary, reflecting MGNREGA’s flexible funding mechanism. This approach ensures that if demand for rural employment rises, so will the financial support, as seen in previous years. The minister’s remarks underline that MGNREGA’s success lies in its ability to respond to the needs of rural workers, regardless of initial allocations.

Release of NREGA funds to West Bengal stooped under Section 27: Minister

The release of funds to West Bengal under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has been halted under the authority of Section 27 of the Act, according to a written statement made by Union Minister of State for Rural Development, Sadhvi Niranjan Jyoti, to the Rajya Sabha on February 8, 2023. The central government has withheld over ₹7,500 crore in payments to the eastern state due to what it described as “non-compliance with directives” issued by the Central government.

Section 27 of the MGNREGA empowers the central government to suspend the release of funds if there are concerns about financial mismanagement. Specifically, the provision allows the government to act upon complaints regarding the misuse or improper utilization of funds allocated under the scheme. If the government finds sufficient cause upon initial investigation, it can order an inquiry by a designated agency. Based on the findings, the central government may halt the disbursement of funds until appropriate corrective measures are implemented to ensure the scheme’s proper functioning. The stoppage of funds remains in place until the issues raised are adequately addressed within a reasonable timeframe.

This action against West Bengal highlights concerns over transparency and accountability in the state’s implementation of MGNREGA. The scheme, which guarantees 100 days of wage employment per year to rural households, is a critical source of income for many in the state. The withholding of funds could have significant social and economic consequences, especially for rural laborers dependent on the scheme for their livelihood. The situation has sparked a political debate, with the state government defending its position while the central government insists on adherence to its guidelines and financial propriety. The resolution of this standoff will likely require negotiations between both governments and a demonstration of compliance from the state.

Govt trims NREGA allocation to increase PMAY, Jal Jeevan budget: CEA

Chief Economic Advisor V. Anantha Nageswaran, on February 6, 2023, explained that the allocation for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in the Budget for 2023-24 was reduced due to a strategic shift in focus towards other rural development initiatives, namely the Pradhan Mantri Awas Yojana (PMAY) and the Jal Jeevan Mission. These programs are anticipated to create substantial employment opportunities for the same pool of rural workers, reducing the need for as much funding under MGNREGS.

“One of the reasons for lowering the allocation for MGNREGS was the substantial increase in funding for PMAY (Rural) and the Jal Jeevan Mission,” Nageswaran stated. “These projects are expected to provide jobs for rural workers, fulfilling the employment needs that MGNREGS typically addresses.”

He further emphasized that MGNREGS is a demand-driven scheme, meaning that if rural workers do not find sufficient employment under PMAY or the Jal Jeevan Mission, the government retains the flexibility to increase funding for MGNREGS as needed. “If rural workers are not absorbed into these projects, we can accommodate them with a higher allocation in MGNREGS, ensuring no gap in employment opportunities.”

The government’s approach highlights a broader rural development strategy aimed at not only providing immediate employment but also contributing to long-term infrastructure development, including housing and water supply. These initiatives are seen as pivotal for improving living conditions in rural India while simultaneously generating jobs, thus promoting sustainable development. However, the reduced budget for MGNREGS has raised concerns about potential shortfalls in employment for those who rely on it, making the success of the alternative programs critical for rural livelihood security.

NREGA workers bodies slam cut in Budget allocation

On February 4, 2023, the NREGA Sangharsh Morcha and the Peoples’ Action for Employment Guarantee expressed strong disapproval of the Union Budget 2023-24, calling the allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) a “travesty” and an “assault” on the fundamental right to work for millions of rural laborers.

In their joint statement, the organizations condemned the budgetary provision, which they noted accounted for only about 1% of the nation’s GDP. They pointed out that even this figure was a conservative estimate, based on the assumption that only those households employed this year at the minimum wage rate were considered. “This unjust allocation undermines the livelihoods of rural workers, striking at the heart of a program designed to provide employment security. It is a deliberate step towards dismantling the NREGA, leaving millions of rural families vulnerable to poverty,” they said.

In protest, NREGA workers across the country took to the streets on NREGA Diwas (February 2) to voice their opposition to the budget cuts. Demonstrations were held in multiple states, with workers demanding that the government restore and increase funding to ensure the survival of the program, which has been a critical lifeline for rural communities, especially during economic downturns and crises like the COVID-19 pandemic. The protests highlighted widespread discontent, as workers emphasized the significance of NREGA not just as an employment scheme but as a means of dignified survival for rural India.

Budget 2023: NREGA allocation drops by over 32%

The Narendra Modi-led government has significantly reduced the budget allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), the Centre’s flagship rural job guarantee program. In the Union Budget for 2023-24, presented by Finance Minister Nirmala Sitharaman on February 1, 2023, the scheme has been allocated Rs 60,000 crore. This marks a sharp reduction of over 32% compared to the Revised Budget estimate for the previous fiscal year, which stood at Rs 89,400 crore.

The allocation for MNREGA in FY23 was initially set at Rs 73,000 crore but was later revised upward due to increased demand for rural employment during the year. The Rs 60,000 crore earmarked for FY24 is the lowest allocation for the scheme in the past four budgets, reflecting a clear downtrend in funding over the current term of the Modi government.

This budget cut comes at a time when rural distress and unemployment remain pressing issues, with the scheme serving as a lifeline for millions of rural households. Critics argue that reducing funds for MNREGA could severely impact the livelihoods of marginalized communities, especially as the scheme has played a critical role in providing employment during times of economic downturn, such as during the COVID-19 pandemic. On the other hand, the government has justified the cuts by pointing to increased capital expenditure and a shift towards long-term infrastructure development in rural areas, which they claim will generate more sustainable employment. However, concerns persist over whether these initiatives will be able to replace the immediate income security MNREGA provides to rural workers.

5.6 cr households received employment under NREGA: Economic Survey 2023

Under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), a significant milestone was reached as a total of 5.6 crore households availed employment opportunities, generating an impressive 225.8 crore person-days of work as of January 6, 2023, according to the Economic Survey 2022-23. The scheme, which aims to provide at least 100 days of guaranteed wage employment to rural households, continues to play a crucial role in poverty alleviation and rural development.

The survey, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha, highlights the steady increase in the number of works completed under the scheme over recent years. In FY22, 85 lakh works were completed, while 70.6 lakh works were completed so far in FY23, as of January 9, 2023. This reflects the sustained efforts of the government to enhance infrastructure and improve livelihoods in rural areas.

The types of work completed under MGNREGS are diverse and contribute significantly to household-level asset creation. These include the construction of animal sheds, farm ponds, dug wells, horticulture plantations, and vermicomposting pits, among others. The scheme offers dual benefits, providing both labor and material costs to the beneficiaries per standard rates. These projects not only enhance the productive capacity of rural households but also support the broader goals of agricultural sustainability and environmental conservation.

Despite the success of the scheme, the Economic Survey observes a year-on-year (YoY) decline in the monthly demand for MGNREGS work. The Survey attributes this decline to the normalization of the rural economy, driven by robust agricultural growth and a swift recovery from the economic impacts of the COVID-19 pandemic. As the rural economy strengthens, fewer households are seeking employment through the scheme, indicating a positive shift towards self-sufficiency. However, the Survey emphasizes the continued importance of MGNREGS as a safety net for vulnerable populations, ensuring that rural households have access to employment opportunities when needed.

Looking ahead, the Economic Survey underscores the need to adapt and refine the implementation of MGNREGS in response to evolving rural dynamics. While the demand for work may fluctuate, the scheme remains a vital tool in addressing rural poverty, supporting agricultural resilience, and fostering sustainable development across India’s vast rural landscape. Under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), a significant milestone was reached as a total of 5.6 crore households availed employment opportunities, generating an impressive 225.8 crore person-days of work as of January 6, 2023, according to the Economic Survey 2022-23. The scheme, which aims to provide at least 100 days of guaranteed wage employment to rural households, continues to play a crucial role in poverty alleviation and rural development.

The survey, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha, highlights the steady increase in the number of works completed under the scheme over recent years. In FY22, 85 lakh works were completed, while 70.6 lakh works were completed so far in FY23, as of January 9, 2023. This reflects the sustained efforts of the government to enhance infrastructure and improve livelihoods in rural areas.

The types of work completed under MGNREGS are diverse and contribute significantly to household-level asset creation. These include the construction of animal sheds, farm ponds, dug wells, horticulture plantations, and vermicomposting pits, among others. The scheme offers dual benefits, providing both labor and material costs to the beneficiaries following standard rates. These projects not only enhance the productive capacity of rural households but also support the broader goals of agricultural sustainability and environmental conservation.

Despite the success of the scheme, the Economic Survey observes a year-on-year (YoY) decline in the monthly demand for MGNREGS work. The Survey attributes this decline to the normalization of the rural economy, driven by robust agricultural growth and a swift recovery from the economic impacts of the COVID-19 pandemic. As the rural economy strengthens, fewer households are seeking employment through the scheme, indicating a positive shift towards self-sufficiency. However, the Survey emphasizes the continued importance of MGNREGS as a safety net for vulnerable populations, ensuring that rural households have access to employment opportunities when needed.

Looking ahead, the Economic Survey underscores the need to adapt and refine the implementation of MGNREGS in response to evolving rural dynamics. While the demand for work may fluctuate, the scheme remains a vital tool in addressing rural poverty, supporting agricultural resilience, and fostering sustainable development across India’s vast rural landscape.

Govt may increase Budget allocation for NREGA in 2023

Experts predict that the government may increase the allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) in the Budget for 2023-24, given the rising number of individuals seeking employment through this central scheme. The NREGA, a critical social safety net aimed at providing at least 100 days of guaranteed wage employment to rural households, has seen a significant surge in demand, especially in the wake of ongoing economic challenges exacerbated by inflation and the after-effects of the pandemic. In the previous budget, the government allocated ₹73,000 crore for the NREGA but later sought a supplementary grant of ₹45,174 crore due to increased demand for work and higher operational costs. This year, experts believe that the government may not only enhance the financial outlay for the scheme but also consider introducing reforms to streamline its implementation, ensuring that funds are disbursed more efficiently and beneficiaries are paid on time. The growing reliance on NREGA underscores its importance in providing economic stability for rural populations, especially in times of agricultural distress and unemployment. As the budget approaches, there is widespread anticipation that the government will address the scheme’s funding to meet the expanding needs of rural India.

FAQs

When was the NREGA law passed by Parliament?

The Indian parliament passed the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) on August 23, 2005.

When was NREGA notified?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was notified through the Gazette of India (Extraordinary) Notification on September 7, 2005. It came into effect on February 2, 2006, in 200 backward districts.

What is a household under NREGA?

Under NREGA, a household refers to members of a family who are related to each other by blood, marriage or adoption and are residing together and share meals or hold a common ration card.

Who fixes the NREGA rate list?

The central government fixes state-wise wage rates for NREGA workers, under Sub-section (1) of Section 6 of the MGNREGA, 2005. The rate for MGNREGA wages are fixed, according to the changes in the Consumer Price Index-Agriculture Labour. This index reflects the increase in inflation in rural areas.

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