MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
Posted 12 Nov 2025
Updated 14 Nov 2025
3 min read
Article Summary
Article Summary
The Centre prioritized water conservation works by amending the scheme, focusing on water-stressed areas and ensuring increased funds for water-related projects to enhance rural livelihoods and resource sustainability.
Why in News?
The Centre has amended Schedule-I of the MGNREGA Act, prioritising water conservation and related works in rural blocks.
Core Objectives of the Scheme
Salient Features of the Scheme
Providing not <100 days of unskilled manual work as a guaranteed employment in a financial year to every household in rural areas as per demand.
Strengthening livelihood resource base of the poor
Proactively ensuring social inclusion
Strengthening Panchayati Raj Institutions
Major Amendments
Blocks classified as 'Over-exploited', 'Critical', 'Semi-critical', and 'Safe' will be treated as priority areas for action.
The District Programme Coordinator or Programme Officer must ensure that a minimum share of total project costs in these blocks is spent on water-related works as follows:
65% in Over-exploited and Critical rural blocks
40% in Semi-critical rural blocks
30% in Safe rural blocks
Categorisation of Assessment Units as per Dynamic Ground Water Resources Assessment Report (Central Ground Water Board)
About MGNREGA:
Launch Year: 2005
Type: Centrally Sponsored Scheme (60:40 by Centre and States)
Ministry: Ministry of Rural Development.
Total Outlay:₹86,000 crore (Union Budget 2025)
Beneficiaries:All Household members aged more than 18 years and residing in rural area.
Coverage: Entire country except districts having 100 % urban populations.
Monitoring: Social Audit by the Gram Sabha
Basis for Wage Rates:
CPI-AL (Consumer Price Index-Agriculture Labour)
Each State/UT can provide wage over and above the wage rate notified by the Central Government.
Additional 50 days of unskilled wage employment in a financial year during:-
drought/natural calamity affected notified rural areas and
For ST Household in a forest area, provided that these households have no other private property except for the land rights provided under Forest Rights Act (FRA), 2006.
State Governments may make provision for providing additional days of employment beyond the period guaranteed under the Act from their own funds.
Right to unemployment allowance and the payment is to be made in 15 days.
Delay compensation at a rate of 0.05% of unpaid wages per day for duration of delay beyond 16th day of the closure of Muster Roll.
Special Category of Workers (Vulnerable Groups) under MGNREGA
It includes Persons with disabilities, Primitive Tribal Groups, Nomadic Tribal Groups, De-notified Tribes, Women in special circumstances, Senior citizens(>65 years of age), HIV positive persons, Internally displaced persons & Rehabilitated bonded labour
Key procedural features of MGNREGS:
Wage to material ratio to be maintained at 60:40 at Gram Panchayat level.
At least 1/3rd of the beneficiaries shall be women who have registered and requested for work under this Act.
Other Key features:
GeoNREGA: tracks creation of assets by geotagging it, at "Before", "During" and "After" stages of the asset creation.
Project 'UNNATI': aims to skill MGNREGS beneficiaries so that they can move from the current partial employment to full-time employment.
Achievements
MGNREGA has become the world's largest social welfare programme.
Women's participation has risen from 48% in 2014 to 58% in 2025.
