About the Programme

• The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, guarantees 100 days of work each financial year to any rural household willing to do public work-related unskilled manual work at the statutory minimum wage.
• In addition to this, there is a provision for upto additional 50 days of unskilled wage employment in a financial year in drought/natural calamity notified rural areas. The State Governments may make provision for providing additional days beyond the period guaranteed under the Act from their own funds. 

• The act makes it obligatory for the State to give rural households work on demand. In case such employment is not provided within 15 days of registration, the applicant becomes eligible for an unemployment allowance.
• The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) was initiated as directed in MGNREGA to implement the mandate of the Act.
• The Ministry of Rural Development (MRD) is monitoring the entire implementation of the MGNREGS in association with state governments.

Key Features of the Scheme

• Every rural household has the right to register under MGNREGA.
• One-third of the stipulated workforce must be women. 
• Work site facilities such as creche, drinking water and shade have to be provided.
• The employment will be provided within a radius of 5 km: if it is above 5 km extra wage will be paid.
• MGNREGA wage rates vary from state to state and are revised by indexing them to the  Consumer Price Index-Agricultural Labourers (CPI-AL) for a particular state.
• While 60 per cent of the total expenditure has to be on wage, 40 per cent spending has to be on the creation of material assets.
• Permissible works predominantly include water and soil conservation, afforestation and land development works.
• Gram sabhas must recommend the works that are to be undertaken and at least 50% of the works must be executed by them.
• Social Audit has to be done by the Gram Sabha.

Funding Pattern

• Funding is shared between the centre and the states. 
• The funding pattern of the scheme comprises 100% funding for unskilled labour cost and 75% of the material cost by Central Government and rest shall be borne by the State Government. 

Why in news?

• According to a study, 84.8 lakh workers registered under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) were removed from the programme. 
• This decline correlates with the implementation of the Aadhaar-Based Payment System (ABPS) for MGNREGS in January 2023.

Aadhaar-Based Payment System (ABPS)

• APBS is a unique payment system which uses Aadhaar number as a central key for electronically channelizing the Government subsidies and benefits in the Aadhaar Enabled Bank Accounts (AEBA) of the intended beneficiaries.
• Implemented by: National Payments Corporation of India (NPCI)
• To be eligible for the ABPS, workers must meet several conditions: 
  • their Aadhaar must be linked to their job card, 
  • the name on the Aadhaar must match the name on the job card, and 
  • their bank account must be Aadhaar- seeded and mapped with the National Payments Corporation of India.