THE MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT  
GUARANTEE ACT, 2005 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

GUARANTEE OF EMPLOYMENT IN RURAL AREAS 

3.  Guarantee of rural employment to households. 

EMOPLOYMENT GUARANTEE SCHEMES AND UNEMPLOYMENT ALLOWANCE 

CHAPTER III 

4.  Employment Guarantee Schemes for rural areas. 
5.  Conditions for providing guaranteed employment. 
6.  Wage rate. 
7.  Payment of unemployment allowance. 
8.  Non-disbursement of unemployment allowance in certain circumstances. 
9.  Disentitlement to receive unemployment allowance in certain circumstances. 

CHAPTER IV 

IMPLEMENTING AND MONITORING AUTHORITIES 

10.  Central Employment Guarantee Council. 
11.  Functions and duties of Central Council. 
12.  State Employment Guarantee Council. 
13.  Principal authorities for planning and implementation of Schemes. 
14.  District Programme Coordinator. 
15.  Programme Officer. 
16.  Responsibilities of the Gram Panchayats. 
17.  Social audit of work by Gram Sabha. 
18.  Responsibilities of State Government in implementing Scheme. 
19.  Grievance redressal mechanism. 

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ESTABLISHMENT OF NATIONALAND STATE EMPLOYMENT GUARANTEE FUNDSAND AUDIT 

CHAPTER V 

SECTIONS 

20.  National Employment Guarantee Fund. 
21.  State Employment Guarantee Fund. 
22.  Funding pattern. 
23.  Transparency and accountability. 
24.  Audit of accounts. 

CHAPTER VI 

MISCELLANEOUS 

25.  Penalty for non-compliance. 
26.  Power to delegate. 
27.  Power of Central Government to give directions. 
28.  Act to have overriding effect. 
29.  Power to amend Schedules. 
30.  Protection of action taken in good faith. 
31.  Power of Central Government to make rules. 
32.  Power of State Government to make rules. 
33.  Laying of rules and Schemes. 
34.  Power to remove difficulties. 

SCHEDULE I. 
SCHEDULE II. 

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1[THE MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT], 
2005 

ACT NO. 42 OF 2005 

[5th September, 2005.] 

An Act to provide for the enhancement of livelihood security of the households in rural areas of 
the country by providing at least one hundred days of guaranteed wage employment in every 
financial  year  to  every  household  whose  adult  members  volunteer  to  do  unskilled  manual 
work and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  1[theMahatma  Gandhi 

National Rural Employment Guarantee Act], 2005. 

(2) It extends to the whole of India except the State of Jammu and Kashmir*. 

(3)  It  shall  come  into  force  on  such  date2  as  the  Central  Government  may,  by  notification  in  the 
Official Gazette, appoint; and different dates may be appointed for different States or for different areas in 
a State and any reference in any such provision to the commencement of this Act shall be construed as a 
reference to the coming into force of that provision in such State or, as the case may be, in such area: 

Provided that this Act shall be applicable to the whole of the territory to which it extends within a 

period of five years from the date of enactment of this Act. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “adult” means a person who has completed his eighteenth years of age; 

(b) “applicant” means the head of a household or any of its other adult members who has applied 

for employment under the Scheme; 

(c) “Block” means a community development area within a district comprising a group of Gram 

Panchayats; 

(d)  “Central  Council”  means  the  Central  Employment  Guarantee  Council  constituted  under                   

sub-section (1) of section 10; 

(e)  “District  Programme  Coordinator”  means  an  officer  of  the  State  Government  designated  as 

such under sub-section (1) of section 14 for implementation of the Scheme in a district; 

(f)  “household”  means  the  members  of  a  family  related  to  each  other  by  blood,  marriage  or 

adoption and normally residing together and sharing meals or holding a common ration card; 

(g)  “implementing  agency”  includes  any  department  of  the  Central  Government  or  a  State 
Government, a Zila Parishad, Panchayat at intermediate level, Gram Panchayat or any local authority 
or Government undertaking or non-governmental organisation authorised by the Central Government 
or the State Government to undertake the implementation of any work taken up under a Scheme; 

(h)  “minimum  wage”,  in  relation  to  any  area,  means  the  minimum  wage  fixed  by  the  State 
Government under section 3 of the Minimum Wages Act, 1948 (11 of 1948) for agricultural labourers 
as applicable in that area; 

1. Subs. by Act 46 of 2009, s. 2, for “the National Rural Employment Guarantee Act” (w.e.f. 2-10-2009). 
2.  2ndFebruary,  2006,  vide  notification  No. S.O.  87(E), dated  24th  January,  2006,  see  Gazette  of  India,  Extraordinary,  Part  II 

sec.3(ii). 

*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and 

Kashmir and the Union territory of Ladakh. 

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(i)  “National  Fund”  means  the  National  Employment  Guarantee  Fund  established  under  sub-

section (1) of section 20; 

(j) “notification” means a notification published in the Official Gazette; 

(k)  “preferred  work”  means  any  work  which  is taken  up for  implementation on  a  priority  basis 

under a Scheme; 

(l) “prescribed” means prescribed by rules made under this Act; 

(m)  “Programme  Officer”  means  an  officer  appointed  under  sub-section  (1)  of  section  15  for 

implementing the Scheme; 

(n) “project” means any work taken up under a Scheme for the purpose of providing employment 

to the applicants; 

(o) “rural area” means any area in a State except those areas covered by any urban local body or a 

Cantonment Board established or constituted under any law for the time being in force; 

(p)  “Scheme”  means  a  Scheme  notified  by  the  State  Government  under  sub-section  (1)  of  

section4; 

(q)  “State  Council”  means  the  State  Employment  Guarantee  Council  constituted  under  sub-

section (1) of section 12; 

(r) “unskilled manual work” means any physical work which any adult person is capable of doing 

without any skill or special training; 

(s) “wage rate” means the wage rate referred to in section 6. 

CHAPTER II 

GUARANTEE OF EMPLOYMENT IN RURAL AREAS 

3.  Guarantee  of  rural  employment  to  households.—(1)  Save  as  otherwise  provided,  the  State 
Government shall, in such rural area in the State as may be notified by the Central Government, provide 
to  every  household  whose  adult  members  volunteer  to  do  unskilled  manual  work  not  less  than  one 
hundred days of such work in a financial year in accordance with the Scheme made under this Act. 

(2) Every person who has done the work given to him under the Scheme shall be entitled to receive 

wages at the wage rate for each day of work. 

(3)  Save  as  otherwise  provided  in  this  Act,  the  disbursement  of  daily  wages  shall  be  made  on  a 

weekly basis or in any case not later than a fortnight after the date on which such work was done. 

(4) The Central Government or the State Government may, within the limits of its economic capacity 
and  development,  make  provisions  for  securing  work  to  every  adult  member  of  a  household  under  a 
Scheme for any period beyond the period guaranteed under sub-section (1), as may be expedient. 

CHAPTER III 

EMPLOYMENT GUARANTEE SCHEMESANDUNEMPLOYMENT ALLOWANCE 

4. Employment Guarantee Schemes for rural areas.—(1) For the purposes of giving effect to the 
provisions of section 3, every State Government shall, within six months from the date of commencement 
of this Act, by notification, make a Scheme, for providing not less than one hundred days of guaranteed 
employment  in  a  financial  year  to  every  household  in  the  rural  areas  covered  under  the  Scheme  and 
whose  adult  members,  by  application,  volunteer  to  do  unskilled  manual  work  subject  to  the  conditions 
laid down by or under this Act and in the Scheme: 

Provided that until any such Scheme is notified by the State Government, the Annual Action Plan or 
Perspective  Plan  for  the  Sampoorna  Grameen  Rozgar  Yojana  (SGRY)  or  the  National  Food  for  Work 
Programme (NFFWP) whichever is in force in the concerned area immediately before such notification 
shall be deemed to be the action plan for the Scheme for the purposes of this Act. 

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(2) The  State  Government shall  publish  a summary  of  the  Scheme  made  by  it  in  at least two  local 
newspapers, one of which shall be in a vernacular language circulating in the area or areas to which such 
Scheme shall apply. 

(3)  The  Scheme  made  under  sub-section  (1)  shall  provide  for  the  minimum  features  specified  in 

Schedule I. 

5.  Conditions  for  providing  guaranteed  employment.—(1)  The  State  Government  may,  without 
prejudice to the conditions specified in Schedule II, specify in the Scheme the conditions for providing 
guaranteed employment under this Act. 

(2) The persons employed under any Scheme made under this Act shall be entitled to such facilities 

not less than the minimum facilities specified in Schedule II. 

6.  Wage  rate.—(1)  Notwithstanding  anything  contained  in  the  Minimum  Wages  Act,  1948  (11  of 

1948), the Central Government may, by notification, specify the wage rate for the purposes of this Act: 

Provided that different rates of wages may be specified for different areas: 

Provided further that the wage rate specified from time to time under any such notification shall not 

be at a rate less than sixty rupees per day. 

(2) Until such time as a wage rate is fixed by the Central Government in respect of any area in a State, 
the minimum wage fixed by the State Government under section 3 of the Minimum Wages Act, 1948 (11 
of 1948) for agricultural labourers, shall be considered as the wage rate applicable to that area. 

7. Payment of unemployment allowance.—(1) If an applicant for employment under the Scheme is 
not  provided  such  employment  within  fifteen  days  of  receipt  of  his  application  seeking  employment  or 
from the date on which the employment has been sought in the case of an advance application, whichever 
is later, he shall be entitled to a daily unemployment allowance in accordance with this section. 

(2) Subject to such terms and conditions of eligibility as may be prescribed by the State Government 
and  subject  to  the  provisions  of  this  Act  and  the  Schemes  and  the  economic  capacity  of  the  State 
Government, the unemployment allowance payable under sub-section (1) shall be paid to the applicants 
of a household subject to the entitlement of the household at such rate as may be specified by the State 
Government, by notification, in consultation with the State Council: 

Provided that no such rate shall be less than one-fourth of the wage rate for the first thirty days during 
the  financial  year  and  not  less  than  one-half  of  the  wage  rate  for  the  remaining  period  of  the  financial 
year. 

(3) The liability of the State Government to pay unemployment allowance to a household during any 

financial year shall cease as soon as— 

(a) the applicant is directed by the Gram Panchayat or the Programme Officer to report for work 

either by himself or depute at least one adult member of his household; or 

(b) the period for which employment is sought comes to an end and no member of the household 

of the applicant had turned up for employment; or 

(c) the adult members of the household of the applicant have received in total at least one hundred 

days of work within the financial year; or 

(d)  the  household  of  the  applicant  has  earned  as  much  from  the  wages  and  unemployment 
allowance  taken  together  which  is  equal  to  the  wages  for  one  hundred  days  of  work  during  the 
financial year. 

(4) The unemployment allowance payable to the household of an applicant jointly shall be sanctioned 
and disbursed by the Programme Officer or such local authority (including the Panchayats at the district, 
intermediate or village level) as the State Government may, by notification, authorise in this behalf. 

(5)  Every  payment  of  unemployment  allowance  under  sub-section (1) shall be made  or  offered  not 

later than fifteen days from the date on which it became due for payment. 

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(6)  The  State  Government  may  prescribe  the  procedure  for  payment  of  unemployment  allowance 

under this Act. 

8.  Non-disbursement  of  unemployment  allowance  in  certain  circumstances.—(1)  If  the 
Programme Officer is not in a position to disburse the unemployment allowance in time or at all for any 
reason beyond his control, he shall report the matter to the District Programme Coordinator and announce 
such reasons in a notice to be displayed on his notice board and the notice board of the Gram Panchayat 
and such other conspicuous places as he may deem necessary. 

(2) Every case of non-payment or delayed payment of unemployment allowance shall be reported in 
the annual report submitted by the District Programme Coordinator to the State Government along with 
the reasons for such non-payment or delayed payment. 

(3) The State Government shall take all measures to make the payment of unemployment allowance 

reported under sub-section (1) to the concerned household as expeditiously as possible. 

9.  Disentitlement  to  receive  unemployment  allowance  in  certain  circumstances.—An  applicant 

who— 

(a) does not accept the employment provided to his household under a Scheme; or 

(b) does not report for work within fifteen days of being notified by the Programme Officer or the 

implementing agency to report for the work; or 

(c) continuously remains absent from work, without obtaining a permission from the concerned 
implementing agency for a period of more than one week or remains absent for a total period of more 
than  one  week  in  any  month,  shall  not  be  eligible  to  claim  the  unemployment  allowance  payable 
under  this  Act  for  a  period  of  three  months  but  shall  be  eligible  to  seek  employment  under  the 
Scheme at any time. 

CHAPTER IV 

IMPLEMENTING AND MONITORING AUTHORITIES 

10.  Central  Employment  Guarantee  Council.—(1)  With  effect  from  such  date  as  the  Central 
Government  may,  by  notification  specify,  there  shall  be  constituted  a  Council  to  be  called  the  Central 
Employment Guarantee Council to discharge the functions, and perform the duties, assigned to it by or 
under this Act. 

(2) The headquarters of the Central Council shall be at Delhi. 

(3)  The  Central  Council  shall  consist  of  the  following  members  to  be  appointed  by  the  Central 

Government, namely:— 

(a) a Chairperson; 

(b) not more than such number of representatives of the Central Ministries including the Planning 
Commission not below the rank of Joint Secretary to the Government of India as may be determined 
by the Central Government; 

(c) not more than such number of representatives of the State Governments as may be determined 

by the Central Government; 

(d)  not  more  than  fifteen  non-official  members  representing  Panchayati  Raj  Institutions, 

organisations of workers and disadvantaged groups: 

Provided  that  such  non-official  members  shall  include  two  chairpersons  of  District  Panchayats 

nominated by the Central Government by rotation for a period of one year at a time: 

Provided  further  that  not  less  than  one-third  of  the  non-official  members  nominated  under  this 

clause shall be women: 

Provided also that not less than one-third of the non-official members shall be belonging to the 

Scheduled Castes, the Scheduled Tribes, the Other Backward Classes and Minorities; 

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(e)  such  number  of  representatives  of  the  States  as  the  Central  Government  may,  by  rules, 

determine in this behalf; 

(f) a Member-Secretary not below the rank of Joint Secretary to the Government of India. 

(4)  The  terms  and  conditions  subject  to  which  the  Chairperson  and  other  members  of  the  Central 
Council  may  be  appointed  and the  time,  place and  procedure  of  the  meetings  (including  the quorum  at 
such meetings) of the Central Council shall be such as may be prescribed by the Central Government. 

11. Functions and duties of Central Council.—(1) The Central Council shall perform and discharge 

the following functions and duties, namely:— 

(a) establish a central evaluation and monitoring system; 

(b) advise the Central Government on all matters concerning the implementation of this Act; 

(c)  review  the  monitoring  and  redressal  mechanism  from  time  to  time  and  recommend 

improvements required; 

(d) promote the widest possible dissemination of information about the Schemes made under this 

Act; 

(e) monitoring the implementation of this Act; 

(f) preparation of annual reports to be laid before Parliament by the Central Government on the 

implementation of this Act; 

(g) any other duty or function as may be assigned to it by the Central Government. 

(2) The Central Council shall have the power to undertake evaluation of the various Schemes made 
under  this  Act  and  for  that  purpose  collect  or  cause  to  be  collected  statistics  pertaining  to  the  rural 
economy and the implementation of the Schemes. 

12.  State  Employment  Guarantee  Council.—(1)  For  the  purposes  of  regular  monitoring  and 
reviewing  the  implementation  of  this  Act  at  the  State  level,  every  State  Government  shall  constitute  a 
State  Council  to  be  known  as  the  ......(name  of  the  State)  State  Employment  Guarantee  Council  with  a 
Chairperson and such number of official members as may be determined by the State Government and not 
more  than  fifteen  non-official  members  nominated  by  the  State  Government  from  Panchayati  Raj 
institutions, organisations of workers and disadvantaged groups: 

Provided that not less than one-third of the non-official members nominated under this clause shall be 

women: 

Provided  further  that  not  less  than  one  third  of  the  non-official  members  shall  be  belonging  to  the 

Scheduled Castes, the Scheduled Tribes, the Other Backward Classes and Minorities. 

(2) The terms and conditions subject to which the Chairperson and members of the State Council may 
be appointed and the time, place and procedure of the meetings (including the quorum at such meetings) 
of the State Council shall be such as may be prescribed by the State Government. 

(3) The duties and functions of the State Council shall include— 

(a) advising the State Government on all matters concerning the Scheme and its implementation 

in the State; 

(b) determining the preferred works; 

(c)  reviewing  the  monitoring  and  redressal  mechanisms  from  time  to  time  and  recommending 

improvements; 

(d) promoting the widest possible dissemination of information about this Act and the Schemes 

under it; 

(e) monitoring the implementation of this Act and the Schemes in the State and coordinating such 

implementation with the Central Council; 

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(f) preparing the annual report to be laid before the State Legislature by the State Government; 

(g)  any  other  duty  or  function  as  may  be  assigned  to  it  by  the  Central  Council  or  the  State 

Government. 

(3) The State Council shall have the power to undertake an evaluation of the Schemes operating in the 
State and for that purpose to collect or cause to be collected statistics pertaining to the rural economy and 
the implementation of the Schemes and Programmes in the State. 

13.  Principal  authorities  for  planning  and  implementation  of  Schemes.—(1)  The  Panchayats  at 
district, intermediate and village levels shall be the principal authorities for planning and implementation 
of the Schemes made under this Act. 

(2) The functions of the Panchayats at the district level shall be— 

(a) to finalise and approve block wise shelf of projects to be taken up under a programme under 

the Scheme; 

(b) to supervise and monitor the projects taken up at the Block level and district level; and 

(c) to carry out such other functions as may be assigned to it by the State Council, from time to 

time. 

(3) The functions of the Panchayat at intermediate level shall be— 

(a) to approve the Block level Plan for forwarding it to the district Panchayat at the district level 

for final approval; 

(b) to supervise and monitor the projects taken up at the Gram Panchayat and Block level; and 

(c) to carry out such other functions as may be assigned to it by the State Council, from time to 

time. 

(4) The District Programme Coordinator shall assist the Panchayat at the district level in discharging 

its functions under this Act and any Scheme made thereunder. 

14. District Programme Coordinator.—(1) The Chief Executive Officer of the District Panchayat 
or  the  Collector  of  the  district  or  any  other  district  level  officer  of  appropriate  rank  as  the  State 
Government  may  decide  shall  be  designated  as  the  District  Programme  Coordinator  for  the 
implementation of the Scheme in the district. 

(2) The District Programme Coordinator shall be responsible for the implementation of the Scheme in 

the district in accordance with the provisions of this Act and the rules made thereunder. 

(3) The functions of the District Programme Coordinator shall be— 

(a)  to  assist  the  district  Panchayat  in  discharging  its  functions  under  this  Act  and  any  scheme 

made thereunder; 

(b)  to  consolidate  the  plans  prepared  by  the  Blocks  and  project  proposals  received  from  other 
implementing  agencies  for  inclusion  in  the  shelf  of  projects  to  be  approved  by  the  Panchayat  at 
district level; 

(c) to accord necessary sanction and administrative clearance, wherever necessary; 

(d)  to  coordinate  with  the  Programme  Officers  functioning  within  his  jurisdiction  and  the 
implementing  agencies  to  ensure  that  the  applicants  are  provided  employment  as  per  their 
entitlements under this Act; 

(e) to review, monitor and supervise the performance of the Programme Officers; 

(f) to conduct periodic inspection of the works in progress; and 

(g) to redress the grievances of the applicants. 

(4)  The  State  Government  shall  delegate  such  administrative  and  financial  powers  to  the  District 

Programme Coordinator as may be required to enable him to carry out his functions under this Act. 

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(5) The Programme Officer appointed under sub-section (1) of section 15 and all other officers of the 
State Government and local authorities and bodies functioning within the district shall be responsible to 
assist the District Programme Coordinator in carrying out his functions under this Act and the Schemes 
made thereunder. 

(6) The District Programme Coordinator shall prepare in the month of December every year a labour 
budget for the next financial year containing the details of anticipated demand for unskilled manual work 
in  the  district  and  the  plan  for  engagement  of  labourers  in  the  works  covered  under  the  Scheme  and 
submit it to the district panchayat. 

15. Programme Officer.—(1) At every Panchayat at intermediate level, the State Government shall 
appoint a person who is not below the rank of Block Development Officer with such qualifications and 
experience  as  may  be  determined  by  the  State  Government  as  Programme  Officer  at  the  Panchayat  at 
intermediate level. 

(2)  The  Programme  Officer  shall  assist  the  Panchayat  at  intermediate  level  in  discharging  its 

functions under this Act and any Scheme made thereunder. 

(3) The Programme Officer shall be responsible for matching the demand for employment with the 

employment opportunities arising from projects in the area under his jurisdiction. 

(4) The Programme Officer shall prepare a plan for the Block under his jurisdiction by consolidating 
the  project  proposals  prepared  by  the  Gram  Panchayats  and  the  proposals  received  from  intermediate 
panchayats. 

(5) The functions of the Programme Officer shall include— 

(a)  monitoring  of  projects  taken  up  by  the  Gram  Panchayats  and  other  implementing  agencies 

within the Block; 

(b) sanctioning and ensuring payment of unemployment allowance to the eligible households; 

(c) ensuring prompt and fair payment of wages to all labourers employed under a programme of 

the Scheme within the Block; 

(d) ensuring that regular social audits of all works within the jurisdiction of the Gram Panchayat 
are  carried  out  by  the  Gram  Sabha  and  that  prompt  action  is  taken  on  the  objections  raised  in  the 
social audit; 

(e) dealing promptly with all complaints that may arise in connection with the implementation of 

the Scheme within the Block; and 

(f) any other work as may be assigned to him by the District Programme Coordinator or the State 

Government. 

(6)  The  Programme  Officers  shall  function  under  the  direction,  control  and  superintendence  of  the 

District Programme Coordinator. 

(7)  The  State  Government  may,  by  order,  direct  that  all  or  any  of  the  functions  of  a  Programme 

Officer shall be discharged by the Gram Panchayat or a local authority. 

16.  Responsibilities  of  the  Gram  Panchayats.—(1)  The  Gram  Panchayat  shall  be  responsible  for 
identification  of  the  projects  in  the  Gram  Panchayat  area  to  be  taken  up  under  a  Scheme  as  per  the 
recommendations of the Gram Sabha and the Ward Sabhas and for executing and supervising such works. 

(2)  A  Gram  Panchayat  may  take  up  any  project  under  a  Scheme  within  the  area  of  the  Gram 

Panchayat as may be sanctioned by the Programme Officer. 

(3) Every Gram Panchayat shall, after considering the recommendations of the Gram Sabha and the 
Ward Sabhas, prepare a development plan and maintain a shelf of possible works to be taken up under the 
Scheme as and when demand for work arises. 

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(4) The Gram Panchayat shall forward its proposals for the development projects including the order 
of priority between different works to the Programme Officer for scrutiny and preliminary approval prior 
to the commencement of the year in which it is proposed to be executed. 

(5) The Programme Officer shall allot at least fifty per cent. of the works in terms of its cost under a 

Scheme to be implemented through the Gram Panchayats. 

(6) The Programme Officer shall supply each Gram Panchayat with— 

(a) the muster rolls for the works sanctioned to be executed by it; and 

(b)  a  list  of  employment  opportunities  available  elsewhere  to  the  residents  of  the  Gram 

Panchayat. 

(7) The Gram Panchayat shall allocate employment opportunities among the applicants and ask them 

to report for work. 

(8)  The  works  taken  up  by  a  Gram  Panchayat  under  a  Scheme  shall  meet  the  required  technical 

standards and measurements. 

17.  Social  audit  of  work  by  Gram  Sabha.—(1)  The  Gram  Sabha  shall  monitor  the  execution  of 

works within the Gram Panchayat. 

(2) The Gram Sabha shall conduct regular social audits of all the projects under the Scheme taken up 

within the Gram Panchayat. 

(3) The Gram Panchayat shall make available all relevant documents including the muster rolls, bills, 
vouchers, measurement books, copies of sanction orders and other connected books of account and papers 
to the Gram Sabha for the purpose of conducting the social audit. 

18. Responsibilities of State Government in implementing Scheme.—The State Government shall 
make available to the District Programme Coordinator and the Programme Officers necessary staff and 
technical support as may be necessary for the effective implementation of the Scheme. 

19. Grievance redressal mechanism.—The State Government shall, by rules, determine appropriate 
grievance redressal mechanisms at the Block level and the district level for dealing with any complaint by 
any person in respect of implementation of the Scheme and lay down the procedure for disposal of such 
complaints. 

CHAPTER V 

ESTABLISHMENT OF NATIONAL AND STATE EMPLOYMENT GUARANTEE FUNDSANDAUDIT 

20.  National  Employment  Guarantee  Fund.—(1)  The  Central  Government  shall,  by  notification, 

establish a fund to be called the National Employment Guarantee Fund for the purposes of this Act. 

(2) The Central Government may, after due appropriation made by Parliament by law in this behalf, 
credit by way of grants or loans such sums of money as the Central Government may consider necessary 
to the National Fund. 

(3)  The  amount  standing  to  the  credit  of  the  National  Fund  shall  be  utilised  in  such  manner  and 

subject to such conditions and limitations as may be prescribed by the Central Government. 

21. State Employment Guarantee Fund.—(1) The State Government may, by notification, establish 
a  fund  to  be  called  the  State  Employment  Guarantee  Fund  for  the  purposes  of  implementation  of  the 
Scheme. 

(2) The amount standing to the credit of the State Fund shall be expended in such manner and subject 
to  such  conditions  and  limitations  as  may  be  prescribed  by  the  State  Government  for  the  purposes  of 
implementation of this Act and the Schemes made thereunder and for meeting the administrative expenses 
in connection with the implementation of this Act. 

(3) The State Fund shall be held and administered on behalf of the State Government in such manner 

and by such authority as may be prescribed by the State Government. 

10 

 
22. Funding pattern.—(1) Subject to the rules as may be made by the Central Government in this 

behalf, the Central Government shall meet the cost of the following, namely: — 

(a) the amount required for payment of wages for unskilled manual work under the Scheme; 

(b) up to three-fourths of the material cost of the Scheme including payment of wages to skilled 

and semi-skilled workers subject to the provisions of Schedule II; 

(c)  such  percentage  of  the  total  cost  of  the  Scheme  as  may  be  determined  by  the  Central 
Government towards the administrative expenses, which may include the salary and allowances of the 
Programme  Officers  and  his  supporting  staff,  the  administrative  expenses  of  the  Central  Council, 
facilities  to  be  provided  under  Schedule  II  and  such  other  item  as  may  be  decided  by  the  Central 
Government. 

(2) The State Government shall meet the cost of the following, namely:— 

(a) the cost of unemployment allowance payable under the Scheme; 

(b) one-fourth of the material cost of the Scheme including payment of wages to skilled and semi-

skilled workers subject to the provisions of Schedule II; 

(c) the administrative expenses of the State Council. 

23.  Transparency  and  accountability.—(1)  The  District  Programme  Coordinator  and  all 
implementing agencies in the District shall be responsible for the proper utilisation and management of 
the funds placed at their disposal for the purpose of implementing a Scheme. 

(2)  The  State  Government  may  prescribe  the  manner  of  maintaining  proper  books  and  accounts  of 
employment  of  labourers  and  the  expenditure  incurred  in  connection  with  the  implementation  of  the 
provisions of this Act and the Schemes made thereunder. 

(3)  The  State  Government  may,  by  rules,  determine  the  arrangements  to  be  made  for  the  proper 
execution of Schemes and programmes under the Schemes and to ensure transparency and accountability 
at all levels in the implementation of the Schemes. 

(4) All payments of wages in cash and unemployment allowances shall be made directly to the person 

concerned and in the presence of independent persons of the community on pre-announced dates. 

(5)  If  any  dispute  or  complaint  arises  concerning  the  implementation  of  a  Scheme  by  the  Gram 

Panchayat, the matter shall be referred to the Programme Officer. 

(6) The Programme Officer shall enter every complaint in a complaint register maintained by him and 
shall  dispose  of  the  disputes  and  complaints  within  seven  days  of  its  receipt  and  in  case  it  relates  to  a 
matter to be resolved by any other authority it shall be forwarded to such authority under intimation to the 
complainant. 

24. Audit of accounts.—(1) The Central Government may, in consultation with the Comptroller and 
Auditor General of India, prescribe appropriate arrangements for audits of the accounts of the Schemes at 
all levels. 

(2)  The  accounts  of  the  Scheme  shall  be  maintained  in  such  form  and  in  such  manner  as  may  be 

prescribed by the State Government. 

CHAPTER VI 

MISCELLANEOUS 

25.  Penalty  for  non-compliance.—Whoever  contravenes  the  provisions  of  this  Act  shall  on 

conviction be liable to a fine which may extend to one thousand rupees. 

26.  Power  to  delegate.—(1)  The  Central  Government  may,  by  notification,  direct  that  the  powers 
exercisable  by  it  (excluding  the  power  to  make  rules)  may,  in  such  circumstances  and  subject  to  such 
conditions and limitations, be exercisable also by the State Government or such officer subordinate to the 
Central Government or the State Government as it may specify in such notification. 

11 

 
 
(2) The State Government may, by notification, direct that the powers exercisable by it (excluding the 
power  to  make  rules  and  Schemes)  may,  in  such  circumstances  and  subject  to  such  conditions  and 
limitations, be exercisable also by such officer subordinate to it as it may specify in such notification. 

27. Power of Central Government to give directions.—(1) The Central Government may give such 
directions as it may consider necessary to the State Government for the effective implementation of the 
provisions of this Act. 

(2) Without prejudice to the provisions of sub-section (1), the Central Government may, on receipt of 
any complaint regarding the issue or improper utilisation of funds granted under this Act in respect of any 
Scheme if prima facie satisfied that there is a case, cause an investigation into the complaint made by any 
agency designated by it and if necessary, order stoppage of release of funds to the Scheme and institute 
appropriate remedial measures for its proper implementation within a reasonable period of time. 

28. Act to have overriding effect.—The provisions of this Act or the Schemes made thereunder shall 
have effect notwithstanding anything inconsistent therewith contained in any other law for the time being 
in force or in any instrument having effect by virtue of such law: 

Provided  that  where  a  State  enactment  exists  or  is  enacted  to  provide  employment  guarantee  for 
unskilled  manual  work  to  rural  households  consistent  with  the  provisions  of  this  Act  under  which  the 
entitlement of the households is not less than and the conditions of employment are not inferior to what is 
guaranteed  under  this  Act,  the  State  Government  shall  have  the  option  of  implementing  its  own 
enactment: 

Provided  further  that  in  such  cases  the  financial  assistance  shall  be  paid  to  the  concerned  State 
Government in such manner as shall be determined by the Central Government, which shall not exceed 
what the State would have been entitled to receive under this Act had a Scheme made under this Act had 
to be implemented. 

29. Power to amend  Schedules.—(1)  If  the  Central Government  is  satisfied  that it is necessary  or 
expedient so to do, it may, by notification, amend Schedule I or Schedule II and thereupon Schedule I or 
Schedule II, as the case may be, shall be deemed to have been amended accordingly. 

(2)  A  copy  of  every  notification  made  under  sub-section  (1)  shall  be  laid  before  each  House  of 

Parliament as soon as may be after it is made. 

30. Protection of action taken in good faith.—No suit, prosecution or other legal proceedings shall 
lie against the District Programme Coordinator, Programme Officer or any other person who is, or who is 
deemed to be, a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860) in 
respect  of  anything  which  is  in  good  faith  done  or  intended  to  be  done  under  this  Act  or  the  rules  or 
Schemes made thereunder. 

31.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 
notification, and subject to the condition of previous publication, make rules to carry out the provisions of 
this Act. 

(2) In particular, and without the prejudice of the foregoing power, such rules may provide for all or 

any of the following matters, namely:— 

(a) the number of representatives of the State Governments under clause (e) of sub-section (3) of 

section 10; 

(b)  the  terms  and  conditions  subject  to  which  the  Chairman  and  other  members  of  the  Central 
Council may be appointed, and the time, place and procedure of the meetings (including the quorum 
at such meetings) of the Central Council, under sub-section (4) of section 10; 

(c) the  manner  in  which and  the conditions  and limitations  subject to  which the  National  Fund 

shall be utilised under sub-section (3) of section 20; 

(d) the rules relating to funding pattern to meet the cost of certain items under sub-section (1) of 

section 22; 

12 

 
(e) any other matter which is to be, or may be, prescribed or in respect of which provision is to be 

made by the Central Government by rules. 

32. Power of State Government to make rules.—(1) The State Government may, by notification, 
and subject to the condition of previous publication, and consistent with this Act and the rules made by 
the Central Government, make rules to carry out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a)  the  terms  and  conditions  upon  which  eligibility  for  unemployment  allowance  may  be 

determined under sub-section (2) of section 7; 

(b) the procedure for payment of unemployment allowance under sub-section (6) of section 7; 

(c) the terms and conditions subject to which the Chairperson and members of the State Council 
may be appointed, and the time, place and procedure of the meetings (including the quorum at such 
meetings) of their appointment to the State Council, under sub-section (2) of section 12; 

(d) the grievance redressal mechanism at the Block level and the District level and the procedure 

to be followed in such matter under section 19; 

(e) the manner in which and the conditions and limitations subject to which the State Fund shall 

be utilised under sub-section (2) of section 21; 

(f) the authority who may administer and the manner in which he may hold the State Fund under 

sub-section (3) of section 21; 

(g) the manner of maintaining books of account of employment of labourers and the expenditure 

under sub-section (2) of section 23; 

(h) the arrangements required for proper execution of Schemes under sub-section (3) of section 

23; 

(i)  the  form  and  manner  in  which  the  accounts  of  the  Scheme  shall  be  maintained  under  sub-

section (2) of section 24; 

(j) any other matter which is to be, or may be, prescribed or in respect of which provision is to be 

made by the State Government by rules. 

33. Laying of rules and Schemes.—(1) Every rule made by the Central Government under this Act 
shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, 
for  a  total  period  of  thirty  days  which  may  be  comprised  in  one  session  or  in  two  or  more  successive 
sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the  successive 
sessions aforesaid, both Houses agree in making any  modification in the rule or both the Houses agree 
that the rule should not be made, the rule shall have thereafter have effect only in such modified form or 
be of no effect, as the case may be; so, however, that any such modification or annulment shall be without 
prejudice to the validity of anything previously done under that rule. 

(2) Every rule or Scheme made by the State Government under this Act shall, as soon as may be after 
it  is  made,  be  laid  before  each  House  of  the  State  Legislature  where  there  are  two  Houses,  and  where 
there is one House of the State Legislature, before that House. 

34. Power to remove  difficulties.—(1)  If  any  difficulty  arises  in  giving  effect to  the  provisions  of 
this Act, the Central Government may, by order published in the Official Gazette, make such provisions, 
not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing 
the difficulty: 

Provided  that  no  order  shall  be  made  under  this  section  after  the  expiry  of  three  years  from  the 

commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

13 

 
1[SCHEDULE I 

See section 4(3) 

MINIMUM FEATURES OF A RURAL EMPLOYMENT GUARANTEE SCHEME 

1.  The  Scheme  notified  under  section  4  by  all  States shall  be  called the Mahatma  Gandhi  National 

Rural  Employment  Guarantee  Scheme”  and  all  documents  pertaining  to  the  said  Scheme  shall  have  a 

mention of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (42 of 2005). 

2. The Mahatma Gandhi National Rural Employment Guarantee Scheme shall hereinafter be referred 

to as “Mahatma Gandhi NREGS” and any reference in the said scheme to the Mahatma Gandhi National 

Rural Employment Guarantee Act, 2005 shall be referred to as “Mahatma Gandhi NREGA”. 

3. The core objectives of the Scheme shall be the following: 

(a)  Providing  not  less  than  one  hundred  days  of  unskilled  manual  work  as  a  guaranteed 

employment in a financial year to every household in rural areas as per demand, resulting in creation 

of productive assets of prescribed quality and durability; 

(b) Strengthening the livelihood resource base of the poor; 

(c) Proactively ensuring social inclusion and 

(d) Strengthening Panchayat raj institutions. 

Provided that  the  said  objectives are applicable  where  the adult  members  volunteer  to do  unskilled 

manual work subject to the conditions laid down by or under this Act and in the Scheme. 

4. (1) The focus of the Scheme shall be on the following works as categorised below: 

I. Category: A: PUBLIC WORKS RELATING TO NATURAL RESOURCES MANAGEMENT- 

2[(i)  Rural  sanitation  related  works,  such  as,  individual  household  latrines,  School  toilet  units, 

Anganwadi  toilets  either  independently  or  in  convergence  with  schemes  of  other  Government 

Departments and unskilled wage  component for construction of Community Sanitary Complexes in 

convergence with “Swachh Bharat Mission (Grameen) to achieve ‘open defecation free’ status, and 

solid and liquid waste management as per prescribed norms;] 

(ii)  Watershed  management  works  such  as  contour  trenches,  terracing,  contour  bunds,  boulder 

checks, gabion structures and spring shed development resulting in a comprehensive treatment of a 

watershed; 

1. Subs by Notification No. S.O. 19(E) Dated 03-01-2014. 
2. Subs. by Notification No. S.O. 2198(E), dated 27-11-2019. 

14 

 
                                                           
(iii)  Micro  and  minor  irrigation  works  and  creation,  renovation  and  maintenance  of  irrigation 

canals and drains; 

1[(iv) renovation of traditional water bodies including desilting of irrigation tanks and other water 

bodies and conservation of old step wells or baolis;] 

(v) Afforestation, tree plantation and horticulture in common and forest lands, road margins, canal 

bunds, tank foreshores and coastal belts duly providing right to usufruct to the households covered in 

Paragraph 5; and 

(vi) Land development works in common land. 

II.  Category  B:  2[COMMUNITY  ASSETS  OR  INDIVIDUAL  ASSETS]  FOR  VULNERABLE 

SECTIONS (ONLY FOR HOUSEHOLDS IN PARAGRAPH 5) 

(i)  Improving  productivity  of  lands  of  households  specified  in  Paragraph  5  through  land 

development and by providing suitable infrastructure for irrigation including dug wells, farm ponds 

and other water harvesting structures; 

(ii) Improving livelihoods through horticulture, sericulture, plantation, and farm forestry; 

(iii) Development of fallow or waste lands of households defined in Paragraph 5 to bring it under 

cultivation; 

3[(iv) Unskilled wage component in construction of houses sanctioned under the Pradhan Mantri 

Awaas Yojana-Gramin or such other State or Central Government Scheme;] 

(v) Creating infrastructure for promotion of livestock such as, poultry shelter, goat shelter, 

piggery shelter, cattle shelter and fodder troughs for cattle; and 

(vi) Creating infrastructure for promotion of fisheries such as, fish drying yards, storage facilities, 

and promotion of fisheries in seasonal water bodies on public land; 

4[(vii) Construction of bio-gas plant for individual; and 

(viii) unskilled wage component towards the construction of bio-gas plant for community.] 

1. Subs. by Notification S.O. No. 973(E) dated 27-3-2017 
2. Subs. by the Notification S.O. No. 1888(E) Dated 21-7-2014 
3. Subs. by the Notification S.O. No. 403(E) Dated 25-1-2018. 
4. Subs. by the Notification S.O. No.1719(E) Dated 8-4-2022. 

15 

 
 
                                                           
III. Category C: COMMON INFRASTRUCTURE 1[INCLUDING FOR NRLM] COMPLIANT 

SELF HELP GROUPS 

(i) Works for promoting agricultural productivity by creating durable infrastructure required for 

bio-fertilizers  and  post-harvest  facilities  including  pucca  storage  facilities  for  agricultural  produce; 

and 

(ii) Common work-sheds for livelihood activities of self-help groups. 

IV. Category D: RURAL INFRASTRUCTURE: 

2[(i)  Rural  sanitation  related  works,  such  as,  individual  household  latrines,  School  toilet  units, 

Anganwadi  toilets  either  independently  or  in  convergence  with  schemes  of  other  Government 

Departments and unskilled wage component for construction of Community Sanitary Complexes in 

convergence  with  Swachh  Bharat  Mission  (Grameen)  to  achieve  ‘open  defecation  free’  status,  and 

solid and liquid waste management as per prescribed norms;] 

(ii) Providing all-weather rural road connectivity to 3[unconnected villages and border areas] and 

to connect identified rural production centers to the existing pucca road network; and construction of 

pucca internal roads or streets including side drains and culverts within a village; 

4[(iii)  Construction  of  play  fields  and  compound  walls  for  government  run  schools  in  the 

villages;] 

(iv)  Works  for  improving  disaster  preparedness  or  restoration  of  roads  or  restoration  of  other 

essential  public  infrastructure  including  flood  control  and  protection  works,  providing  drainage  in 

water  logged  areas,  deepening  and  repairing  of  flood  channels,  chaur  renovation,  construction  of 

storm water drains for coastal protection; 

(v) Construction of buildings for Gram Panchayats, women self-help groups’ federations, cyclone 

shelters, Anganwadi centers, village haats and crematoria at the village or block level. 

(vi)  Construction  of  Food  Grain  Storage  Structures  for  implementing  the  provisions  of  The 

National Food Security Act 2013 (20 of 2013); 

(vii) Production of building material required for construction works under the Act as a part of the 

estimate of such construction works. 

(viii) Maintenance of rural public assets created under the Act; 5[including maintenance of tunnel 

and bridges constructed by the Border Roads Organization] and 

1. Subs. by Notification S.O. No. 1888(E) Dated 21-7-2014. 
2. Subs. by Notification S.O. No. 2198(E), dated 2-7-2020. 
3. Subs. by Notification S.O. No. 4598(E), dated 3-11-2021. 
4. Subs. by Notification S.O. No. 973(E), dated 27-3-2020.  
5. Ins. by Notification S.O. No. 3126(E), dated 7-7-2022. 

16 

 
                                                           
(ix) any other work which may  be notified by the Central Government in consultation with the 

State Government in this regard. 

(2) The order of priority of works shall be determined by each Gram Panchayat in the meetings of the 

Gram Sabha keeping in view potential of the local area, its needs, local resources and in accordance with 

the provisions of Paragraph 9. 

1[Provided that the District Programme Coordinator shall ensure that at least 60% of the works to be 

taken  up  in  a  district  in  terms  of  cost  shall  be  for  creation  of  productive  assets  directly  linked  to 

agriculture and allied activities through development of land, water and trees.] 

(3)  Works  which  are  non-tangible,  not  measurable,  repetitive  such  as,  removing  grass,  pebbles, 

agricultural operations, shall not be taken up. 

5. Works creating individual assets shall be prioritised on land or homestead owned by households 

belonging to the: 

(a) Scheduled Castes 

(b) Scheduled Tribes 

(c) nomadic tribes 

(d) denotified tribes 

(e) other families below the poverty line 

(f) women-headed households 

(g) physically handicapped headed households 

(h) beneficiaries of land reforms 

2[(i) the beneficiaries under the Pradhan Mantri Awaas Yojana-Gramin.] 

(j) beneficiaries under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition 

of Forest Rights) Act, 2006 (2 of 2007), and 

and  after  exhausting  the  eligible  beneficiaries  under  the  above  categories,  on  lands  of  the  small  or 

marginal farmers as defined in the Agriculture Debt Waiver and Debt Relief Scheme, 2008 subject to the 

condition  that  such  households  shall  have  a  job  card  with  at  least  one  member  willing  to  work  on  the 

project undertaken on their land or homestead. 

1. Ins. by the Notification S.O. No. 1888(E) Dated 21-7-2014. 
2. Subs. by the Notification S.O. No. 403(E) Dated 25-1-2018. 

17 

 
                                                           
 
6.  The  State  Government  shall  take  concrete  steps  to  achieve  effective  inter-departmental 

convergence till the last mile implementation level of the works under the Scheme with other Government 

Schemes/programmes  so  as  to  improve  the  quality  and  productivity  of  assets,  and  bring  in  synergy  to 

holistically address the multiple dimensions of poverty in a sustainable manner. 

7.  There  shall  be  a  systematic,  participatory  planning  exercise  at  each tier  of  Panchayat, conducted 

between August to December month of every year, as per a detailed methodology laid down by the State 

Government. All works to be executed by the Gram Panchayats shall be identified and placed before the 

Gram  Sabha,  and  such  works  which  are  to  be  executed  by  the  intermediate  Panchayats  or  other 

implementing  agencies  shall  be  placed  before  the  intermediate  or  District  Panchayats,  along  with  the 

expected outcomes. 

8. Demand for work, either oral or written, shall be registered as and when required by any job card 

holder  and in  the  Rozgar  Diwas  which  is to  be  conducted at  every  Ward  and Gram  Panchayat  level  at 

least once a month, leading to provision of work as per demand. 

9. (1)  Adequate shelf  of  works  shall  be  maintained  by  every  Gram  Panchayat to  meet the  expected 

demand  for  work  in  such  a  way  that  at  least  one  labour  intensive  public  work  with  at  least  one  work 

which is suitable for Particularly Vulnerable Groups especially the aged and the disabled which shall be 

kept open at all times to provide work as per demand. 

(2) The details of the said work(s) shall be prominently displayed through writingson the walls of the 

village. 

10.  While  opening  works  in  the  public  works  category,  it  shall  be  ensured  that  the  ongoing  or 

incomplete works should be completed first. 

11. Work shall be provided within fifteen days, from the date of registration of the demand for work 

or the date from which work has been demanded in case of advance applications, whichever is later. 

12. (1)  In  case  work  could  not  be  provided  as  per  demand  within  the  specified  time  limit, 

unemployment  allowance  shall  be  paid,  as  calculated  automatically  by  the  computer  system  or  the 

Management Information System and as provided under the Act. The programme officer can reject the 

unemployment allowance only on grounds of force majeure. 

(2) In cases where unemployment allowance is paid, or due to be paid, the Programme Officer shall 

inform  the  concerned  District  Programme  Coordinator  in  writing  the  reasons  for  not  providing 

employment to the applicants. 

(3) The District Programme Coordinator shall, in his Annual Report to the State Council explain as to 

why employment could not provided in cases where payment of unemployment allowances is involved. 

18 

 
13.  Every  work  under  the  Scheme  shall  have  a  technical  estimate  duly  sanctioned  by  an  authority 

authorised  by  the  State  Government.  While  sanctioning  the  estimates,  the  following  are  required  to  be 

considered: 

(a) For all works involving construction, cost effective, labour intensive technologies and usage 

of local materials shall be employed as far as possible; 

(b)  The  Bill  of  quantities  (used  in  the  estimate)  is  stated  in  common  terminology  for  easy 

understanding of all stakeholders; 

(c) Each work shall have a summary of the estimate, design and a technical note that indicate the 

expected outcomes from implementing the work. 

14. The works finalised at the Gram Panchayat level and consolidated at the Block or District level 

shall  be  given  Block-wise  administrative  or  financial  sanction  by  the  competent  authority  within  thirty 

days from the date of finalisation of the works at the Gram Panchayat level only after confirming that the 

shelf  of  works  in  any  Gram  Panchayat  is  not  less  than  two  times  the  labour  budget  approved  for  that 

Gram Panchayat. 

15. The muster rolls for works taken up under the scheme shall be maintained as follows, namely: 

(a)  each  muster  roll  shall  be  in  English  or  local  language  and  have  a  unique  identity  number 

electronically generated by the computer System (e-Muster) along with the list of workers applied for 

work. Every Muster roll shall be signed by  the authorised person of the Gram Panchayat or by the 

Programme Officer; and shall contain such mandatory information as may be specified by the Central 

Government; 

(b)  muster  rolls  shall  be  maintained  at  the  worksite  by  marking  attendance  daily  by  a  person 

authorised under the Scheme, details of which shall be made available in public view on a daily basis 

using the computer system. 

(c)  the  muster  roll  shall  be  periodically  checked  by  officials  in  the  manner  prescribed  in  the 

Scheme; 

(d) the muster roll shall be closed on the last given day, countersigned by every worker who has 

worked, and shall be handed over to the technical personnel for measurement; 

(e) a detailed record of muster rolls shall be maintained in the registers as specified from time to 

time; 

(f)  when  a  work  is  in  progress,  the  workers  engaged  in  that  work  may  select  from  amongst 

themselves not less than five workers on a weekly rotational basis to verify and certify all the bills or 

vouchers of their worksite at least once in a week; 

19 

 
(g)  any  person shall  have  access  to  muster rolls  on  the  worksite  on  demand  all  days  during  all 

working hours; 

16. Payment shall only be made based on the measurements taken  at the worksite by the authorised 

personnel within three days of closure of the muster roll. The State Government shall ensure that adequate 

technical  personnel  are  deployed  to  complete  this  work  within  the  stipulated  period.  Suitable  persons 

from  the  families  of  workers  may  be  trained  or  skilled  and  deployed  as  barefoot  engineers  with 

appropriate delegation of technical powers and paid wages as skilled workers. 

17. The State Government shall link the wages, without any gender bias, with the quantity of work 

done and it shall be paid according to the rural schedule of rates fixed after time and motion studies for 

different types of work and different seasons and revised periodically. 

18. A separate Schedule of rates shall be finalised for women, the elderly, people with disabilities and 

people with debilitating ailments so to improve their participation through productive work. 

19. (a)  The  schedule  of  rates  of  wages  for  various  unskilled  labourers  shall  be  fixed  up  so  that  an 

adult person worked for eight hours which include an hour of rest will earn a wage which is equal to the 

stipulated wage rate; 

(b) The working hours of an adult worker shall be flexible but shall not spread over more than 

twelve hours on any day. 

1[20.  For  all  works  taken  up  by  the  Gram  Panchayats,  the  cost  of  the  material  component 
including the wages of the skilled and semi-skilled workers shall not exceed forty per cent at the 

Gram  Panchayat  level.  For  works  taken  up  by  the  implementing  agencies  other  than  Gram 

Panchayats, the overall material component including the wages of the skilled and semi-skilled 

workers shall not exceed forty per cent at the district level.] 

21. The works executed shall be done without engaging any contractor. Implementing agencies under 

the  Scheme  shall execute  the  works in  conformity  with the  processes  specified under  the  Act and  after 

complying with the mandatory proactive disclosures and social audit. 

22.  As  far  as  practicable,  works  executed  by  the  programme  implementation  agencies  shall  be 

performed by using manual labour and no labour displacing machines shall be used. 

23. All material required for the works shall be procured by the Gram Panchayat or the implementing 

agency using a transparent tender process as specified by the State Government. 

1. Subs. by the Notification S.O. No.  1888(E) Dated 21-7-2014. 

20 

 
                                                           
 
24.  Out  of  the  administrative  costs  allowed  under  the  Scheme,  at  least  one  third  (1/3rd)  shall  be 

utilised  at  the  Gram  Panchayat  level  to  employ  and  pay  the  Gram  Rozgar  Sahayak,  other  technical 

personnel as per the work done and for other administrative expenses. 

25. Every Scheme to contain adequate provisions for ensuring transparency and accountability at all 

levels of implementation shall consist of the following measures, namely:- 

(a) Mandatory Proactive disclosure of basic information to all common people and stakeholders 

using a ‘Janata Information System’ consisting of: 

(1)  Display  at  each  worksite  the  ‘Janata’  estimate  of  the  work  -  showing  the  details  of  the  work, 

estimated labour days, quantities of materials to be used in local terminology and item-wise cost of the 

estimate. 

(2) Display on prominent walls or public boards in the village: job cards list, number of days of work 

provided and the wages paid to each job card holder; and entitlements provided under the Act. 

(3)  Display  through  boards  at  the  Gram  Panchayat  Office:  shelf  of  projects  approved,  year-wise 

works taken up or completed by Gram Panchayats and Line Departments, employment provided, funds 

received and expenditure, list of materials with quantities used in each work, rates at which the material 

was procured. 

(4) Display on the website: The Ministry of Rural Development and the State Departments of Rural 

Development  shall  ensure  that  their  websites  are  updated  to  fully  comply  with  all  the  seventeen 

provisions of Section 4(1)(b) of the Right to Information Act (22 of 2005) and all information about the 

Act is available in public domain, through free downloadable electronic form. 

(b)  Concurrent  social  audit  shall  be  done  for  all  works  every  month.  For  this  purpose,  Programme 

Officer shall make available free of cost, details of works done and expenditure made during the past one 

month to the Bharat Nirman Volunteers, village social auditors, self-help groups, youth organisations and 

such other village level organisations for verification and report deviations if any. 

(c) Social audit: Implementation of all conditions for guaranteed rural employment under the Scheme 

and  provision  of  minimum  entitlements  of  labourers,  including  all  expenditure  under  the  Act  shall  be 

subjected  to  social  audit  in  the  manner  prescribed  by  Central  Government  at  least  once  in  every  six 

months consisting of the following: 

i. Identification, training of local youth as social auditors; and formation of trained social auditor 

teams for each Gram Panchayat with youth from outside the Gram Panchayat to conduct social audit, 

provided that at least 25% of village social auditors are from SC/ST groups. For services rendered by 

such  youth,  each  one  of  them  shall  be  paid  an  honorarium  at  a  rate  not  less  than  the  remuneration 

payable to the skilled labour under MGNREGA 

21 

 
ii. Provision of records (muster rolls, M-Books, pay orders) to the social audit teams free of cost. 

iii.  Verification  of  every  work  site  to  cross-check  the  measurements  in  the  field  with  that  on           

M-Books; and to assess the utility and outcomes of the work so executed. 

iv. Verification of every disbursement on record with the concerned beneficiaries. 

v. Verification of outcomes with that of estimated outcomes. 

vi. Verification of provision of entitlements in the field. 

vii. Review the implementation of MGNREGA for vulnerable groups. 

viii.  Conduct  of  Public  hearings  by  the  social  auditors  at the  Ward/Gram  Panchayat  and  Block 

level to read out the findings. 

ix.  Systematic  follow  up  action  on  the  reports  of  the  social  audit  and  completing  recovery  of 

amounts  found  misappropriated  and  completing  suitable  disciplinary/criminal  action  on  the 

irregularities brought out in social audits within 6 months from the date of conduct of social audit. 

26.  Any  misappropriation  of  amounts  spent  under  the  Act  shall  be  recoverable  under  the  Revenue 

Laws for recovery prevailing in the State. 

27.  Provisions  for  regular  inspection  and  supervision  of  works  by  quality  control  teams  to  ensure 

proper quality of work as well as to ensure that the total wages paid for the completion of the work is as 

per the quality and quantity of work done. 

28. The State Government shall take steps to organize, either through its own machinery or working 

with  Civil  Society  Organisations,  the  workers  into  formal  groups/labour  collectives  to  improve  their 

participation in implementation and to ensure provision of entitlements provided under the Act. 

29. Establish an effective grievance redressal mechanism consisting of: 

(a)  Institutional  mechanisms  for  receiving  grievances  as  and  when  they  arise,  while  fixing  one 

day  each  week  during  which  all  officials  shall  be  necessarily  present  for  receiving  grievances  at 

Ward/GP/Block and District level; 

(b) Issuance of dated receipt to complaints accepted in writing, phone, internet and orally by all 

personnel authorized to receive complaints; 

(c) Enquiry through spot verification, inspection and disposal to be completed within 7 working 

days; 

(d) On completion of the enquiry, immediate steps shall be taken by the concerned authority to 

redress the grievance within 15 days; 

22 

 
(e) Failure to dispose of a complaint within seven days shall be considered as a contravention as 

per Section 25 of the Act; 

(f) In case of a prime facie evidence regarding financial irregularities are noticed after preliminary 

enquiry of the complaint or of findings in the social audit report, the District Programme Coordinator 

after obtaining legal advice will ensure that a First Information Report is lodged; 

(g) The concerned authority shall be responsible for informing the person or party aggrieved of 

the conclusion of enquiry and steps being taken for the redressal of his/her grievance, in writing; 

(h)  The  action  taken  on  the  complaints  received  by  all  agencies  shall  be  placed  before  the 

meetings of the intermediate Panchayat and the District Panchayat respectively. 

(i) Appeals against the orders of the Gram Panchayat shall be made to the Programme Officer; 

those against the orders of the Programme Officer shall be made to District Programme Coordinator; 

those  against  the  District  Programme  Coordinator  shall  be  made  to  State  Commissioner  (NREGS), 

Divisional Commissioner (NREGS) and State Grievance Redressal Officer. 

(j) All Appeals shall be made within forty-five days from the date of the issuance of the order. 

(k) All Appeals shall be disposed off within one month. 

(l) There  shall  be  a  system  of escalation of the  grievances  registered  at  ward/GP/Block/District 

level if not resolved within 15 days to the next higher level; and monitoring the same electronically. 

30.  Ombudsperson:  There  shall  be  an  Ombudsperson  for  each  District  for  receiving  grievances, 

enquiring into and passing awards as per guidelines issued. 

31.  State  Government  shall  coordinate  the  activities  of  Programme  Officer,  District  Programme 

Coordinator,  Ombudsmen,  Social  Audits  Units,  call  centers  or  help  Lines,  Vigilance  and  Monitoring 

Committees, National Level Monitors, Rozgar Sahayata Kendras and any other entity authorised by the 

appropriate Government for an effective monitoring of the programme and redressal of grievances. 

32.  Wherever  contravention  of  the  provisions  of  the  Act  has  been  proved  after  due  enquiry  by  the 

State Government or the District Programme Coordinator or the Programme Officer or the Ombudsperson 

or any other authority authorized by the State Government, action in accordance with the provisions  of 

Section 25 of the Act shall be taken. 

33.  The  District  Programme  Coordinator,  the  programme  officer  and  the  Gram  Panchayat  shall 

prepare a report annually containing the facts and figures and achievements relating to the implementation 

of the scheme within his or its jurisdiction and a copy of the same shall be made available to the public on 

demand on payment of such fee as may be specified in the Scheme. 

23 

 
34. All accounts and records including muster rolls relating to the scheme shall be made available for 

public scrutiny free of cost. Any person desirous of obtaining a copy or relevant extracts therefrom may 

be provided such copies or extracts on demand not later than three working days from the date of receipt 

of application. 

35. There shall be a Capacity Building Plan, Information Education Communication plan and a plan 

for strengthening Panchayats as a part of the scheme.] 

24 

 
 
 
SCHEDULE II 

(See section 5) 

CONDITIONS FOR GUARANTEED RURAL EMPLOYMENT UNDER A SCHEME AND MINIMUM  

ENTITLEMENTS OF LABOURERS 

Job cards:— 

1. The adult member of every household residing in any rural area and willing to do unskilled manual 

work may submit the names, age and the address of the household to the Gram Panchayat at the village 

level, in whose jurisdiction they reside, for registration of their household for issuance of a job card. If the 

job seeker is a single woman or disabled person or aged person or released bonded labour or belonging to 

Particularly Vulnerable Tribal Group, they must be given a special job card of a distinct colour which will 

ensure them a special protection in providing work, work evaluation and work site facilitates, as the case 

may be. 

2. It shall be the duty of the Gram Panchayat, after making such enquiry, as it deems fit, to issue a job 

card within fifteen days from the date of receipt of such application, containing therein a unique job card 

number with details of the registered adult members of the household, their photos, Bank or Post office 

account number, insurance policy number and the Aadhaar numbers if any. 

3. The job card issued shall be valid for at least five years after which, it may be renewed after due 

verification. 

4. No job card can be cancelled except where it is found to be a duplicate, or if the entire household 

has permanently migrated to a place outside the Gram Panchayat and no longer lives in the village. 

5. The State Government shall make arrangements for updating the following details in the job card 

regularly while mentioning the key entitlements under the Act are clearly listed as follows:— 

(i) number of days for which work was demanded; 

(ii) number of days of work allocated; 

(iii) description of the work allocated along with the muster roll number; 

(iv) measurement details; 

(v) unemployment allowance, if any, paid; 

(vi) dates and number of days worked; 

(vii) date-wise amount of wages paid; 

(viii) delay compensation paid if any. 

25 

 
Demand for work:— 

6.  Every  adult  member  of  a  registered  household  whose  name  appears  in  the  job  card  shall  be 

entitled to  apply  for  unskilled  manual  work  under  the  Scheme;  and  every  such application  shall  be 

compulsorily  registered,  and  a  receipt  issued  with the  date,  which  shall  be  entered  in  the  computer 

system. 

7. The State shall proactively verify the requirements of the Vulnerable Groups and provide them 

work. 

8.  Application  for  work  can  be  oral  or  written  and  made  to  the  Ward  member  or  to  the  Gram 

Panchayat or to the Programme Officer or any person authorised by the State Government or through 

a telephone or mobile or Interactive Voice Response System or through a call center or through web 

site  or  through  a  kiosk  set  up  for  this  purpose  or  through  any  other  means  authorised  by  the  State 

Government. 

9. Applications for work can be filed individually or for a group together. 

10. There shall be no limit on the number of days of employment for which a person may apply, 

or on the number of days of employment actually provided to him subject to the aggregate entitlement 

of the household. 

11. Normally, applications for work must be for at least fourteen days of continuous work, other 

than the works relating to access to sanitation facilities, for which application for work shall be for at 

least six days of continuous work. 

12. Provision shall be made in the Scheme for advance application, that is, application which may 

be submitted earlier than the date from which employment is sought. 

13. Provision shall be made in the Scheme for submission of multiple applications by the same 

person provided that the corresponding periods for which employment is sought do not overlap. 

Allocation of work:— 

14.  The  Gram  Panchayat  and  Programme  Officer  shall  ensure  that  every  applicant  shall  be 

provided unskilled manual work in accordance with the provisions of the Scheme within fifteen days 

of  receipt  of  an  application  or  the  date  from  which  he  seeks  work  in  case  of  advance  application, 

whichever is later. 

15. Priority shall be given to women in such a way that at least one third of the beneficiaries shall 

be  women  who  have  registered  and  requested  for  work.  Efforts  to  increase  participation  of  single 

women and the disabled shall be made. 

26 

 
16. Applicants who are provided with work shall be so intimated in writing, by means of a letter 

sent to him at the address given in the job card or by a public notice displayed at the office of the 

Panchayats at district, intermediate or village level. 

17. A list of persons who are provided with the work shall be displayed on the notice board of the 

Gram Panchayat and at the office of the Programme Officer and at such other place as the Programme 

Officer may deem necessary and the list shall be open for inspection by the State Government and 

any interested person. 

18. As far as possible, the employment shall be provided within a radius of five kilometers of the 

village where the applicant resides at the time of applying. 

19. A new work under the Scheme can be commenced if at least ten labourers become available 

for  work,  provided  that  this  condition  shall  not  be  applicable  for  new  works,  as  determined  by  the 

State Government, in hilly areas and in respect of afforestation works. 

20. In case the employment is provided outside the radius specified in Paragraph 18, it shall be 

provided within the Block, and the labourers shall be paid ten percent of the wage rate as extra wages 

to meet additional transportation and expenses for living. 

21. A period of employment shall be for at least fourteen days continuously with not more than 

six days in a week. 

Work site management:— 

22. For the purpose of transparency at the work site, the following shall be ensured:— 

(i) there shall be a project initiation meeting in which various provisions of the work shall be 

explained to the workers; 

(ii) a copy of the sanction work order shall be available for public inspection at the worksite; 

(iii) measurement record of each work and details of the workers shall be available for public 

inspection; 

(iv) a Citizens’ Information Board shall be put up at every worksite and updated regularly in 

the manner specified by the Central Government; 

(v)  The  vigilance  and  Monitoring  Committee  setup  according  to  the  instructions  of  the 

Central Government may check all works and its evaluation report will be recorded in the Works 

Register  in  the  format  specified  by  the  Central  Government  and  submitted  to  the  Gram  Sabha 

during the Social Audit. 

27 

 
23. The facilities of safe drinking water, shade for children and periods of rest, first aid box with 

adequate material for emergency treatment for minor injuries and other health hazards connected with 

the work being performed shall be provided at the work site. 

24. In case the number of children below the age of five years accompanying the women working 

at any site is five or more, provisions shall be made to depute one of such women workers to look 

after such children. The person so deputed shall be paid wage rate. The most marginalized women in 

the  locality,  women  in  exploitative  conditions  or  bonded  labour  or  those  vulnerable  to  being 

trafficked or liberated manual scavengers should be employed for providing child care services. 

Welfare:— 

25. If any personal injury is caused to any person employed under the Scheme by any accident 

arising out of and in the course of his employment, he shall be entitled to such medical treatment as 

required, free of cost. 

26. Where hospitalisation of the injured worker is necessary, the State Government shall arrange 

for  such  hospitalisation  including  accommodation,  treatment,  medicines  and  payment  of  daily 

allowance which is not less than half of the wage rate. 

1[27. If a person employed under the Scheme meets with death or becomes permanently disabled 

by accident arising out of and in the course of employment, he or his legal heirs, as the case may be, 

shall be paid by the implementing agency an ex-gratia as per entitlement under the Pradhan Mantri 

Suraksha Bima Yojana or as may be notified by the Central Government.] 

28.  If  any  personal  injury  is  caused  by  accident  to  a  child  accompanying  a  person  who  is 

employed under the Scheme, such person shall be entitled to medical treatment free of cost; and in 

case of death or disablement of the child due to the said accident, ex gratia shall be paid to the legal 

guardians as determined by the State Government. 

Wage payment : — 

29. (1) In case the payment of wages is not made within fifteen days from the date of closure of 

the muster roll, the wage seekers shall be entitled to receive payment of compensation for the delay, 

at  the  rate  of  0.05%  of  the  unpaid  wages  per  day  of  delay  beyond  the  sixteenth  day  of  closure  of 

muster roll. 

(a)  Any  delay  in  payment  of  compensation  beyond  a  period  of  fifteen  days  from  the  date  it 

becomes payable, shall be considered in the same manner as the delay in payment of wages. 

1. Subs. by Notification S.O. No. 2309(E), dated 13-7-2020. 

28 

 
                                                           
 
(b) For the purpose of ensuring accountability in payment of wages and to calculate culpability of 

various functionaries or agencies, the States shall divide the processes leading to determination and 

payment of wages into various stages such as— 

i. measurement of work; 

ii. computerising the muster rolls; 

iii. computerising the measurements; 

iv. generation of wage lists; and 

v. uploading Fund Transfer Orders (FTOs), 

and  specify  stage-wise  maximum  time  limits  along  with  the  functionary  or  agency  which  is 

responsible for discharging the specific function. 

(c)  The  computer  system  shall  have  a  provision  to  automatically  calculate  the  compensation 

payable  based  on  the  date  of  closure  of  the  muster  roll  and  the  date  of  deposit  of  wages  in  the 

accounts of the wage seekers. 

(d)  The  State  Government  shall  pay  the  compensation  upfront  after  due  verification  within  the 

time  limits  as  specified  above  and  recover  the  compensation  amount  from  the  functionaries  or 

agencies who is responsible for the delay in payment. 

(e)  It  shall  be  the  duty  of  the  District  Programme  Coordinator  or  Programme  Officer  to ensure 

that the system is operationalised. 

(f) The number of days of delay, the compensation payable and actually paid shall be reflected in 

the Monitoring and Information System and the Labour Budget. 

(2) Effective implementation of sub-paragraph (1) shall be considered necessary for the purposes 

of the Section 27 of the Act. 

30.  The  payment  of  wages  shall,  unless  so  exempted  by  the  Central  Government,  be  made 

through the individual savings accounts of the workers in the relevant Banks or Post Offices. 

31. In case of employment provided under the Scheme, there shall be no discrimination solely on 

the ground of gender and the provisions of the Equal Remuneration Act, 1976 (25 of 1976), shall be 

complied with. 

Record maintenance and grievance redressal system:— 

32. The Gram Panchayat shall prepare and maintain or cause to be prepared and maintained such 

registers, vouchers and other documents in such form and in such manner as may be specified in the 

29 

 
Scheme containing particulars of job cards and pass books issued, name, age and address of the head 

of the household and the adult members of the households registered with the Gram Panchayat. 

33. The Gram Panchayat shall send such list or lists of the names and addresses of households 

and  their  adult  members  registered  with  it  and  supply  such  other  information  to  the  concerned 

Programme Officer at such periods and in such form as may be specified in the Scheme. 

34. (1) Notwithstanding anything contained in this Schedule, in the event of any national calamity 

such as flood, cyclone, tsunami and earthquake resulting in mass dislocation of rural population, the 

adult members of rural households of areas so affected may— 

(a) seek for registration and get job card issued by the Gram Panchayat or Programme Officer 

of the area of temporary relocation; 

(b)  submit  written  or  oral  applications  for  work  to  the  Programme  Officer  or  the  Gram 

Panchayat of the area of temporary relocation; and 

(c) apply for re-registration and re-issuance of job card in the event of any loss or destruction. 

(2) The details of such job cards shall be intimated to the District Programme Coordinator. 

(3) In the event of restoration of normalcy, the job card so issued shall be re-endorsed at original 

place of habitation and clubbed with the original job card on being retrieved. 

(4) The number of days of employment so provided shall be counted while computing 100 days 

of guaranteed employment per household. 

35. Every worker shall have an opportunity of being heard and register any grievance either orally 

or  in  writing,  at  all  implementation  levels  for  disposal  as  per  the  provisions  of  the  Grievance 

Redressal Mechanism under the Scheme.] 

30 

 
 
