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2. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) I. Background Evolving the design of the wage employment programmes to more effectively fight poverty, the Central Government formulated the National Rural Employment Guarantee Act (MGNREGA) in 2005. With its legal framework and rights-based approach, MGNREGA provides employment to those who demand it and is a paradigm shift from earlier programmes. Notified on September 7, 2005, MGNREGA aims at enhancing livelihood security by providing at least one hundred days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. The Act covered 200 districts in its first phase, implemented on February 2, 2006, and was extended to 130 additional districts in 20072008. All the remaining rural areas have been notified with effect from April 1, 2008. 1.1 Salient features of the Act Right based Framework: For adult members of a rural household willing to do unskilled manual work. Time bound Guarantee: 15 days for provision of employment, else unemployment allowance Upto 100 days in a financial year per household, depending on the actual demand. Labour Intensive Works: 60:40 wage and material ratio for permissible works; no contractors/machinery. Decentralized Planning o Gram Sabhas to recommend works o At least 50% of works by Gram Panchayats for execution o Principal role of PRIs in planning, monitoring and implementation Work site facilities : Cr che, drinking water, first aid and shade provided at worksites Women empowerment: At least one-third of beneficiaries should be women Transparency & Accountability: Proactive disclosure through Social Audits, Grievance Redressal Mechanism, Implementation

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