National Rural Employment Guarantee Act (NREGA)

MGNREGA aims to boost rural livelihood by offering 100 days of guaranteed wage employment yearly to households with adults willing to do unskilled manual work.
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NREGA
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4 mins
10-September-2025

Objective of the NREGA Scheme

The full form of NREGA is National Rural Employment Guarantee Act, launched in 2005 and later renamed as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2009. The scheme provides a legal guarantee of 100 days of wage employment per rural household each year.

As of 2025–26, MGNREGA has supported nearly 13.32 crore workers, becoming a cornerstone for rural development and livelihood security. While wages earned under the scheme provide immediate income, saving a portion in secure investments like Fixed Deposits (FDs) can help rural families build lasting financial stability.

Mahatma Gandhi NREGA scheme important highlights

MGNREGA is not just about jobs—it is about dignity, security, and sustainable development.

1. Employment guarantee

MGNREGA ensures every eligible rural household gets 100 days of unskilled work annually, acting as a financial safety net during tough times.

You can channel part of your earnings into a Bajaj Finance FD, where you get guaranteed returns of up to 7.30% p.a., ensuring your hard work today secures tomorrow. Open FD.

2. Focus on rural development

The scheme contributes to long-term rural progress by building assets like water conservation structures, rural roads, and irrigation canals. These not only create jobs but also strengthen the backbone of villages.

3. Inclusive and demand-driven approach

Employment under MGNREGA is demand-driven. Workers request work, and the government must provide it within 15 days—making it responsive to the needs of the poor.

4. Women’s participation

The Act mandates at least one-third participation of women, with many states achieving over 50%. This empowers women financially and socially.

Women workers saving their wages in FDs can access higher interest rates with special schemes, building long-term independence. Check FD rates.

5. Transparency and accountability

With social audits and public records, communities actively monitor projects, reducing corruption and ensuring resources reach those who need them most.

6. Electronic fund management

Wages are directly credited into workers’ bank accounts through the e-FMS system, ensuring timely payments and financial inclusion.

Direct wages into your bank account can be easily converted into a Fixed Deposit—helping you earn steady interest without market risks. Open an FD online now on the Bajaj Finserv App or website.

Objective of the NREGA Scheme

The MGNREGA was designed to go beyond temporary work and bring long-term security. Its objectives include:

  • Employment guarantee: A legal assurance of jobs during lean agricultural seasons.
  • Economic security: Reliable wages improve household income and resilience.
  • Rural development: Durable infrastructure like roads and irrigation channels strengthens communities.
  • Reduced migration: By creating local opportunities, it limits distress migration to urban areas.

FDs work well alongside MGNREGA wages—offering a simple way to save, grow, and plan for seasonal needs. Book FD.

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New initiatives in the wage employment program

Some of the key initiatives include:

  • People-centric approach: Prioritises rural workers’ needs.
  • Demand-driven design: Villagers decide projects, ensuring relevance.
  • Financial support for states: Labour costs fully covered by the central government.
  • Unemployment allowance: Workers compensated if jobs aren’t provided within 15 days.
  • Gram Panchayat involvement: Local bodies implement at least 50% of projects.
  • Social audits: Regular inspections ensure accountability.


NREGA state-wise wage rate list

State and Union Territory

Daily Wage Rate for NREGA Labor

Andhra Pradesh

Rs. 300.00

Arunachal Pradesh

Rs. 234.00

Assam

Rs. 249.00

Bihar

Rs. 245.00

Chhattisgarh

Rs. 243.00

Goa

Rs. 356.00

Gujarat

Rs. 280.00

Haryana

Rs. 374.00

Himachal Pradesh (Non-Scheduled Area)

Rs. 236.00

Himachal Pradesh (Scheduled Area)

Rs. 295.00

Jammu & Kashmir

Rs. 259.00

Ladakh

Rs. 259.00

Jharkhand

Rs. 245.00

Karnataka

Rs. 349.00

Kerala

Rs. 346.00

Madhya Pradesh

Rs. 243.00

Maharashtra

Rs. 297.00

Manipur

Rs. 272.00

Meghalaya

Rs. 254.00

Mizoram

Rs. 266.00

Nagaland

Rs. 234.00

Odisha

Rs. 254.00

Punjab

Rs. 322.00

Rajasthan

Rs. 266.00

Sikkim

Rs. 249.00

Sikkim (Gyathang, Lachung, Lachen Panchayats)

Rs. 374.00

Tamil Nadu

Rs. 319.00

Telangana

Rs. 300.00

Tripura

Rs. 242.00

Uttar Pradesh

Rs. 237.00

Uttarakhand

Rs. 237.00

West Bengal

Rs. 250.00

Andaman and Nicobar Islands (Andaman District)

Rs. 329.00

Andaman and Nicobar Islands (Nicobar District)

Rs. 374.00

Chandigarh

Rs. 324.00

Dadra and Nagar Haveli

Rs. 324.00

Daman and Diu

Rs. 324.00

Lakshadweep

Rs. 315.00

Puducherry

Rs. 319.00


Source: Wage rate notification for FY2023-24

MGNREGA active workers 2024-25 list

S.No.

State/UT

Active workers

Total workers

Percent (%)

1

Andaman And Nicobar

11,239

57,187

19.65

2

Andhra Pradesh

96,41,136

1,23,71,224

77.93

3

Arunachal Pradesh

3,49,321

4,71,678

74.06

4

Assam

53,73,929

1,05,78,427

50.8

5

Bihar

93,31,283

1,66,66,625

55.99

6

Chhattisgarh

62,37,293

78,25,574

79.7

7

Dn Haveli And Dd

10,773

40,762

26.43

8

Goa

7,146

51,209

13.95

9

Gujarat

26,05,609

89,98,908

28.95

10

Haryana

8,93,428

23,75,087

37.62

11

Himachal Pradesh

14,31,306

28,39,011

50.42

12

Jammu And Kashmir

15,51,595

23,31,388

66.55

13

Jharkhand

39,32,279

1,01,62,680

38.69

14

Karnataka

82,24,213

1,83,00,418

44.94

15

Kerala

24,75,608

58,30,700

42.46

16

Ladakh

38,996

50,371

77.42

17

Lakshadweep

188

16,688

1.13

18

Madhya Pradesh

1,00,60,654

1,77,03,022

56.83

19

Maharashtra

75,82,951

2,97,00,460

25.53

20

Manipur

6,92,815

9,08,237

76.28

21

Meghalaya

8,60,355

12,12,703

70.95

22

Mizoram

2,18,782

2,41,420

90.62

23

Nagaland

5,94,871

7,83,328

75.94

24

Odisha

68,55,320

98,32,695

69.72

25

Puducherry

69,568

1,15,346

60.31

26

Punjab

15,29,202

28,36,504

53.91

27

Rajasthan

1,23,49,334

2,26,76,372

54.46

28

Sikkim

94,148

1,37,770

68.34

29

Tamil Nadu

91,49,846

1,09,18,734

83.8

30

Telangana

58,57,318

1,10,68,594

52.92

31

Tripura

10,41,041

12,01,552

86.64

32

Uttar Pradesh

1,32,61,509

2,13,09,674

62.23

33

Uttarakhand

10,40,163

16,24,250

64.04

34

West Bengal

1,04,36,865

2,56,98,541

40.61

 

Total

13,38,10,084

25,69,37,139

 

 

Work covers under the NREGA scheme

Here are a few tasks which are covered under the Mahatma Gandhi NREGA scheme:

  1. Water conservation: Contour trenches, barriers, boulder checks, gabion structures, dams, stop dams, springs area improvement.
  2. Drought proofing: Afforestation, tree plantation.
  3. Irrigation canals: Micro and minor irrigation works.
  4. Irrigation facilities: Farm ponds, horticulture, plantation, farm bunding, land development on household-owned land.
  5. Renovation of water bodies: Desilting of tanks.
  6. Flood control: Drainage in waterlogged areas, deepening, repairing flood channels, stormwater drains for coastal protection.
  7. Rural connectivity: Culverts, roads within villages.
  8. Construction of Bharat Nirman: Rajiv Gandhi Sewa Kendra, Knowledge Resource Centre, Gram Panchayat Bhawan.
  9. Agriculture works: NADEP composting, vermicomposting, liquid bio-manures.
  10. Livestock works: Poultry shelter, goat shelter, pucca floor, urine tank, fodder trough, azolla as cattle-feed supplement.
  11. Fisheries works: Fisheries in seasonal water bodies on public land.
  12. Coastal area work: Fish drying yards, belt vegetation.
  13. Rural drinking water: Soak pits, recharge pits.
  14. Rural sanitation: Individual household latrines, school toilet units, anganwadi toilets, solid and liquid waste management.

Any other work decided by the Central Government, in consultation with the State Government.

Read Also: What Is National Savings Scheme (NSS)

What is the role of Gram Panchayat in MGNREGA?

The Gram Sabha plays a crucial role in the Mahatma Gandhi National Rural Employment Guarantee Scheme:

  • Prioritising Works: It identifies and ranks potential projects based on local needs and resources.
  • Monitoring Implementation: The Gram Sabha oversees the execution of works within the Gram Panchayat.
  • Social Audits: It acts as the primary platform for conducting social audits, ensuring transparency and accountability.
  • Resolving Worker Grievances: The Gram Sabha provides a forum for workers to address any concerns or queries related to MGNREGA work.

What is the role of Gram Sabha in NREGA?

Here are all the details about what the role of Gram Sabha in MGNREGA is:

Prioritising local works based on their potential in the area.

Monitoring the execution of work within the Gram Panchayat

Serving as the primary forum for social audits.

Providing a platform to address workers' queries related to any MGNREGA work.


Role of state governments in MGNREGA

Here are all the details about what the role of state governments in MGNREGA is:

  1. Formulating rules to outline the state's responsibilities under the act.
  2. Establishing the State Employment Guarantee Council.
  3. Setting up the State Employment Guarantee Fund (SEGF).
  4. Ensuring the appointment of Employment Guarantee Assistants (Gram Rozgar Sahayak), as well as Personnel Officers and staff at the State, district, cluster, and Gram Panchayat levels for the effective execution of the scheme.

Read also: MSSC scheme

Role of State Employment Guarantee Council (SEGC) in MGNREGA

Here are all the details about what the role of State Employment Guarantee Council (SEGC) in MGNREGA is:

  1. Offering suggestions for enhancing the scheme's execution.
  2. Monitoring the scheme's progress.
  3. Recommending work proposals to the central government.
  4. Creating awareness about the scheme and its features in districts.

Benefits of the MGNREGA scheme

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides numerous benefits, particularly for rural communities:

  • It guarantees 100 days of wage employment annually to rural households, reducing unemployment and poverty.
  • The scheme helps improve the income levels of rural families, especially the economically weaker sections.
  • Projects under MGNREGA, such as building roads and improving irrigation, contribute to rural infrastructure.
  • It provides equal wages and work opportunities for women, contributing to financial independence and gender equality.
  • The scheme acts as a safety net during agricultural off-seasons or in times of economic distress.

How to apply for work under the NREGA scheme?

Applying for work is simple:

  1. Obtain a Job Card under MGNREGA.
  2. Apply for work verbally, online, or in writing.
  3. Get a receipt with the date of request.
  4. Employment must be provided within 15 days.
  5. Workers can apply for at least 14 days of continuous work or in advance.

Eligibility criteria for the Mahatma Gandhi NREGA Act

To apply under MGNREGA, you must:

  • Be an Indian citizen.
  • Be at least 18 years old.
  • Reside in a rural household.
  • Be willing to undertake unskilled manual labour.

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NREGA entitlements to eligible rural individuals

Every MGNREGA-registered household enjoys:

  • Right to a Job Card.
  • Right to demand and receive work within 15 days.
  • Right to an unemployment allowance if work isn’t provided.
  • Right to projects planned with local community input.
  • Right to work within 5 km of residence.
  • Right to notified wage rates and timely payment.
  • Right to basic facilities like water and toilets at worksites.
  • Right to grievance redressal and participation in social audits.

Coverage under the MGNREGA

The scheme supports a wide range of rural activities such as:

  • Agriculture and allied works
  • Rural sanitation projects
  • Irrigation and flood management
  • Watershed development
  • Livestock and fisheries
  • Drinking water projects
  • Construction of Anganwadi Centres

For workers engaged in these projects, setting aside part of their wages in Bajaj Finance FD ensures safe and consistent growth of savings. Book FD.

MGNREGA app

To improve accessibility, the MGNREGA app helps workers:

  • Track job applications and work status.
  • Monitor wages and pending payments.
  • Access sanctioned work details and fund allocations.
  • Stay informed through mobile-based transparency tools.

MGNREGA helpline number

For complaints and queries, workers can contact:

Ministry of Rural Development – Government of India
Address: Krishi Bhavan, Dr. Rajendra Prasad Road, New Delhi - 110001

Conclusion

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is more than just an employment program—it is a movement towards sustainable rural growth. By ensuring 100 days of guaranteed work, empowering women, and improving rural infrastructure, it uplifts millions of families.

At the same time, saving a part of these wages in Fixed Deposits can provide rural households with secure, interest-earning financial cushions. This dual approach—earning through MGNREGA and saving through FDs—can help build a more stable and prosperous future. Open an FD account.

Want to Know More Government Schemes? Read below Listed Other Government Schemes Article

Frequently Asked Questions

Who introduced MGNREGA?

The act was first proposed by Ex Prime Minister P.V. Narasimha Rao in 1991

Why is MNREGA still active under the new government?

MNREGA continues under successive governments as it plays a crucial role in providing employment and supporting rural livelihoods, aligning with broader national development goals.

What is the difference between ‘Skill India’ initiative and MNREGA?

'Skill India' focuses on enhancing industry related technical skills for securing better jobs, while MNREGA provides guaranteed employment opportunities, primarily in rural areas, addressing immediate livelihood needs.

What is the definition of Household in MGNREGA?

"Household" refers to individuals within a family unit connected by blood, marriage, or adoption, typically residing together and sharing meals or holding a collective ration card.

Is the Employment Guarantee Act limited to particular states or districts?

No, it is operational in every rural district nationwide.

Who started Mahatma Gandhi National Rural Employment Guarantee Act 2005?

MGNREGA was initiated by the Government of India under the leadership of then Prime Minister Dr. Manmohan Singh. It aimed to enhance livelihood security in rural areas.

Which state first started MGNREGA?

MGNREGA was first implemented in the state of Andhra Pradesh on February 2, 2006. It was one of the first states to pilot the scheme, setting the stage for nationwide implementation.

What is the full name of MGNREGA?

The full name of MGNREGA is the Mahatma Gandhi National Rural Employment Guarantee Act.

What is the difference between NREGA and MGNREGA?

NREGA and MGNREGA are the same government scheme. NREGA stands for National Rural Employment Guarantee Act, while MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act. The scheme was renamed from NREGA to MGNREGA in 2009 as a tribute to Mahatma Gandhi.

What is the MGNREGA scheme?

The MGNREGA was launched to improve the livelihoods of rural households by guaranteeing at least 100 days of paid work per year for adult members who are willing to do unskilled manual labor.

What is the main objective of MGNREGA?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was introduced on 7th September 2005. It aims to provide at least 100 days of guaranteed paid work per year to adult members of rural households who are willing to do unskilled manual labor.

Who started the MGNREGA scheme?

The Act was initially proposed by Prime Minister P.V. Narasimha Rao in 1991. After its parliamentary approval, it was implemented in 625 districts across India.

Who can apply for MNREGA?

Adults aged 18 and over can apply for an NREGA card by registering under the Mahatma Gandhi NREGA Yojana. This can be done on a prescribed form or on plain paper and should be submitted to the local Gram Panchayat at any time during the year.

Is MGNREGA successful?

The MGNREGA programme is the world's largest social welfare scheme. It has helped to lift millions of villagers out of rural poverty over the past decade. The following key factors have contributed to its success.

What is the new name of NREGA?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is the new name for the National Rural Employment Guarantee Act (NREGA).

What are the uses of MGNREGS?

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) aims to provide 100 days of guaranteed wage employment to rural households. It helps reduce poverty, create rural infrastructure, and promote sustainable development through various labor-intensive projects.

In which year was MGNREGA launched?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was launched in 2005 to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household willing to do unskilled manual work.

What is the slogan of MGNREGA?

The slogan of MGNREGA is “Rozgar Ka Adhikar”, which translates to “Right to Employment.” It emphasizes the scheme’s objective of ensuring wage employment as a legal right for rural households.

How do I check my MGNREGA payment?

You can check your MGNREGA payment status online by visiting the official MGNREGA website and entering details such as job card number and registered mobile number. Payments can also be verified through Gram Panchayats or bank statements.

How to get MGNREGA money?

To receive MGNREGA wages, you need to register for a job card at your local Gram Panchayat. After completing work under the scheme, wages are transferred directly to your bank account linked to the job card.

Is MGNREGA only for BPL?

No, MGNREGA is not limited to Below Poverty Line (BPL) families. It is available to all rural households willing to do unskilled manual work, irrespective of their economic status, ensuring inclusive employment opportunities.

Which ministry launched MGNREGA?

The Ministry of Rural Development, Government of India, launched the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2005 to provide guaranteed wage employment in rural areas.

Who regulates MGNREGA?

MGNREGA is regulated by the Ministry of Rural Development, with implementation carried out by state governments through Panchayati Raj Institutions (PRIs) at the grassroots level.

When was MGNREGA launched in India?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was launched on February 2, 2006. It was initially implemented in 200 districts and later expanded across the country. The scheme guarantees 100 days of wage employment per financial year to rural households willing to do unskilled manual work.

What are the three features of NREGA?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is built on three key pillars: guaranteed wage employment, community involvement, and poverty reduction.

What is the benefit of NREGA?

The primary objectives of both NREGA and MGNREGA are to strengthen the livelihood security of rural households by ensuring a minimum of 100 days of wage employment each financial year. Additionally, the schemes aim to develop durable assets and infrastructure in rural areas, thereby enhancing the quality of life and productivity of the rural population.

What is the daily amount of NREGA?

According to Galaxy Classes, the MGNREGA wage rate for the financial year 2025–26 has been revised to Rs. 370 per day, effective from April 1, 2025. This marks an increase from the previous rate of Rs. 349 per day.

How MGNREGA wage rates are decided?

MGNREGA wages are paid on a piece-rate basis, meaning payment is made based on the amount of work completed. Each state has a predefined Schedule of Rates, which outlines the expected work output. Wages for MGNREGA beneficiaries are then calculated according to this output, ensuring that the actual payment reflects the worker’s performance.

Can I start an FD with small amounts from my wages?

Yes, with Bajaj Finance FDs you can begin with just Rs. 15,000, making it easy to invest even from modest earnings. Invest now!

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