The National Rural Employment Guarantee Act, 2005 guarantees 100 days of employment in a financial year to any rural household whose adult members are willing to do unskilled manual work. This work guarantee can also serve other objectives: generating productive assets, protecting the environment, empowering rural women, reducing ruralurban migration and fostering social equity, among others. The Act which came into force initially in 200 districts, and will be extended gradually to other areas notified by the Central Government. It will cover the whole country within five years.
NREGA Summary
- Eligibility: Any person who is above the age of 18 and resides in rural areas is entitled to apply for work.
- Entitlement: Any applicant is entitled to work within 15 days, for as many days as he/she has applied, subject to a limit of 100 days per household per year.
- Distance: Work is to be provided within a radius of 5 kilometres of the applicant’s residence if possible, and in any case within the Block. If work is provided beyond 5 kilometres, travel allowances have to be paid.
- Wages: Workers are entitled to the statutory minimum wage applicable to agricultural labourers in the state, unless and until the Central Government “notifies” a different wage rate. If the Central Government notifies, the wage rate is subject to a minimum of Rs 60/- per day.
- Timely payment: Workers are to be paid weekly, or in any case not later than a fortnight. Payment of wages is to be made directly to the person concerned in the presence of independent persons of the community on pre-announced dates.
- Unemployment allowance: If work is not provided within 15 days, applicants are entitled to an unemployment allowance: one third of the wage rate for the first thirty days, and one half thereafter.
- Worksite facilities: Labourers are entitled to various facilities at the worksite such as clean drinking water, shade for periods of rest, emergency health care, and child-minding.
