National Rural Employment Guarantee Act, 2005 An Overview

Presented by, Click to edit Master subtitle style RAVI SHAH Gujarat National Law University

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Introduction.

The economist of Belgian (who became an Indian citizen in 2002) Dr Jean Dreze had conceptualised and drafted the first version of the NREGA. The Mahatma Gandhi Rural Employment Guarantee Scheme (MNREGS), initiated in 2005, has received priority policy attention in Indias Eleventh Five Year Plan (2007 4/23/12

Received the assent of the' President on September 5, 2005. was notified on September 7, 2005. It extends to the whole of India except the State of Jammu and Kashmir. The Act came into force on February 2, 2006 and was implemented in a phased manner. Phase I it was introduced in 200 of 4/23/12 the most backward districts of the

Phase II It was implemented in an additional 130 districts. Phase IIIThe Scheme was extended to the remaining 274 rural districts of India from April 1, 2008.

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OBJECTIVE

The objective of the Act is to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a nancial year to every household whose adult members volunteer to do unskilled manual work.

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GOALS

Strong social safety net for the vulnerable groups by providing a fallback employment source, when other employment alternatives are scarce or inadequate. Growth engine for sustainable development of an agricultural economy. Through the process of providing employment on works that address causes of chronic poverty such as drought, deforestation and 4/23/12

EMPLOYMENT GUARANTEE AND THE RIGHT TO WORK

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Employment Guarantee Act: The Basic Idea

The Employment Guarantee Act is a step towards the right to work, as an aspect of the fundamental right to live with dignity.

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The right to work as a fundamental right

The right to life is a fundamental right of all citizens under Article 21 of the Indian Constitution. Right to life includes the right to live with human dignity, it would include all these aspects which would make life meaningful, complete and living. (Supreme Court)
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The right to work in the Directive Principles of the Constitution

The State shall direct its policy towards securing that the citizen, men and women equally, have the right to an adequate means of livelihood [Article 39(a)] The State shall make effective provision for securing the right to work (Article 41)

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NREGA 2005 in a Nutshell

The National Rural Employment Guarantee Act 2005 is a law whereby: any adult who is willing to do unskilled manual work at the minimum wage is entitled to being employed on local public works within 15 days of applying.
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The Unemployment Allowance (sec-7)

If employment is not provided within 15 days, the applicant is entitled to an unemployment allowance: At least one fourth of the minimum wage for the first 30 days.

At least one half of the minimum wage thereafter.

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WORKERS ENTITLEMENTS

Who is eligible? Is there a limit on the number of days of work? Where will the work be provided? What is the minimum wage due to NREGA labourers? How and when are wages to be paid?
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Who is eligible?
Anyone above the age of 18 who resides in rural areas.

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Is there a limit on the number of days of work?

Yes: 100 days per household per year. Each nuclear family counts as a separate household.

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Where will the work be provided?

Within 5 kilometres of the applicants residence, as far as possible. If work is provided beyond 5 kilometres, a travel allowance has to be paid.

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A person working for 7 hours would normally earn a wage equal to the wage rate(SchI(8)) Minimum wage fixed by the state Government under the minimum wage Act,1948; unless the Central Government notifies a different norm. Centre may fix wages, at not less 4/23/12 than Sixty rupees per day (6(1))

What is the minimum wage due to NREGA labourers?

How and when are wages to be paid?

Weekly, or in any case not later than a fortnight. Directly to the person concerned, in front of the community.

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Mandatory worksite facilities

Drinking water Shade Medical aid Creche if more than five children below age 6 are present

Note: These facilities are to be provided by the implementing agency.

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Gender-related provisions

Equal wages for women and men in all circumstances. No gender discrimination of any kind. Priority for women in the allocation of work: at least 33% of labourers should be women.

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EMPLOYMENT GUARANTEE SCHEME

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Employment Guarantee Scheme (EGS)

Each State has to launch an employment guarantee scheme within six months of the Act coming into force.

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Block is the basic unit of implementation.

EGS: Basic Implementation Principles

In each Block, a Programme Officer is to coordinate the implementation of EGS Gram Panchayats are the main implementing agencies. Accountability to Gram Sabhas.
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EGS: Implementing agencies

Gram Panchayats (half of EGS works) Other Panchayati Raj Institutions (PRIs) Line departments (PWD, Forest Dept.) NGOs.

Note: Private contractors are banned.

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EGS: Decentralised planning

Programme Officer to maintain shelf of projects, based on proposals from the implementing agencies. Gram Panchayats also supposed to prepare a shelf of works based on the recommendations of the Gram Sabha.
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EGS: Permissible works in order of priority (SchI(1))

water conservation; drought proofing ; irrigation canals including micro and minor irrigation works; provision of irrigation facility to land owned by households belonging to the SCs and STs or to land of land reforms and Indira Awas Yojana beneficiaries;

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EGS is a demand driven programme

Employment to be provided on demand, within 15 days. Programme Officer sanctions projects to ensure that all applicants get work. Programme Officer to arrange payment of unemployment allowance to those who dont get work.
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EGS: Applying for work

Step 1 (Registration): Gram Panchayat to register interested households, to facilitate advance planning. Step 2 (Application): Adult

members of registered households apply for work.

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EGS: The Registration Process

Unit of registration is the household. Gram Panchayat to issue a job card to each applicant. Special meeting of Gram Sabha to be held to invite applications.

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EGS: The Application Process

Any adult member of a registered household can apply for work at any time. Applications should be for at least 14 days of continuous work. Advance applications are allowed.

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EGS: Cost sharing

Central Government to pay for:

wage costs, 75% of material costs, and some administrative costs. 25% of material costs other administrative costs, unemployment allowance.

State governments to pay for:

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TRANSPARENCY AND ACCOUNTABILITY

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Hamara Paisa, Hamara Hisaab!

All NREGA-related documents to be available for public scrutiny. Copies of documents to be made available at nominal cost. Muster rolls to be pro-actively displayed at Panchayat Bhawan. Documents can also be obtained under the Right to Information Act.
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Social Audits

Gram Sabhas to conduct social audits of all works taken up within Gram Panchayat All relevant documents to be provided to the Gram Sabha by the Gram Panchayat and other implementing agencies
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Beware the anticorruption clause!

Section 25 Whoever contravenes the provisions of this Act shall on conviction be liable to a fine which may extend to one thousand rupees. Section 27 of the Act allows the Central Government to stop release of funds if there is any suspicion of corruption.
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This means:

Arbitrary powers to stop funds