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Study Notes on MGNREGA – For RBI Grade B & Other Exams

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) can be called a pioneering initiative by the government of India as it guarantees work to rural unskilled manual labourers. in addition to the guaranteed work, it also provides unemployment allowance to those it cannot provide work. Let us know more about this scheme here in this article. 

I. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Government Scheme for RBI Grade B & NABARD Grade A Exams

» Launch Year

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), also known as Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is Indian legislation enacted in 2005.


» Main Provisions under MGNREGA

It provides a legal guarantee for 100 days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage. 


» Ministry In-charge

The Ministry of Rural Development (MRD) is monitoring the entire implementation of this scheme in association with the state government.


» MGNREGA Background 

When NREGA was notified in 2005, it merged the then ongoing schemes of the Jawahar Gram Samridhi Yojana (JGSY), Employment Assurance Scheme (EAS) and Sampoorna Grameen Rojgar Yojana (SGRY).


» Wage & Material Ratio

A 60:40 wage and material ratio has to be maintained.


» Cost Division

The central govt. bears the 100% wage cost of unskilled manual labour and 75% of the material cost including the wages of skilled and semi-skilled workers. 


» Unemployment Allowance

If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.


» Mandate

At least one-third of beneficiaries shall be women


» Social Audit

The social audit has to be done by Gram Sabha at least once every 6 months.


» Wage Revision

Wage revision is linked to the changes in the Consumer Price Index for Agricultural Workers (CPI-AL).


This is all from us in this article about the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). We hope that you liked the information given in here. For more such informative articles, keep visiting Oliveboard

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