The mahatma gandhi national rural employment guarantee act, 2005

THE NATIONAL RURAL EMPLOYMENT GUARANTEE ACT, 2005 # 
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. Short title, extent and commencement. 
-(1) This Act may be called the 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 date 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.  
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;  
(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 section 4;  
(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. ! 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 SCHEMES AND UNEMPLOYMENT 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.  
(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. (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; (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; (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 blockwise 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. (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. (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 FUNDS AND 
AUDIT 
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.  
 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. (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; (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.  
SCHEDULE I [See section 4(3)] MINIMUM FEATURES OF A RURAL EMPLOYMENT GUARANTEE 
SCHEME  
1. The focus of the Scheme shall be on the following works in their order of priority:- (i) water 
conservation and water harvesting; (ii) drought proofing (including afforestation and tree 
plantation); (iii) irrigation canals including micro and minor irrigation works; (iv) provision of 
irrigation facility to land owned by households belonging to the Scheduled Castes and 
Scheduled Tribes or to land of beneficiaries of land reforms or that of the beneficiaries under 
the Indira Awas Yojana of the Government of India; (v) renovation of traditional water 
bodies including desilting of tanks; (vi) land development; (vii) flood control and protection 
works including drainage in water logged areas; (viii) rural connectivity to provide all-
weather access; and (ix) any other work which may be notified by the Central Government in 
consultation with the State Government.  
2. Creation of durable assets and strengthening the livelihood resource base of the rural poor 
shall be an important objective of the Scheme.  
3.  The works taken up under the scheme shall be in rural areas.  
4.  The State Council shall prepare a list of preferred works for different areas based on their 
ability to create durable assets.  
5. The Scheme shall be subject to appropriate arrangements as may be laid down by the State 
Government under the rules issued by it for proper maintenance of the public assets created 
under the Scheme.  
6. Under no circumstances shall the labourers be paid less than the wage rate.  
7. When wages are directly linked with the quantity of work, the wages shall be paid according 
to the schedule of rates fixed by the State Government for different types of work every 
year, in consultation with the State Council.  
8. The schedule of rates of wages for unskilled labourers shall be so fixed that a person working 
for seven hours would normally earn a wage equal to the wage rate.  
9. The cost of material component of projects including the wages of the skilled and semi-
skilled workers taken up under the Scheme shall not exceed forty per cent. of the total 
project costs.  
10. It shall be open to the Programme Officer and Gram Panchayat to direct any person who 
applied for employment under the Scheme to do work of any type permissible under it.  
11. The Scheme shall not permit engaging any contractor for implementation of the projects 
under it.  
12. As far as practicable, a task funded under the Scheme shall be performed by using manual 
labour and not machines.  
13. Every Scheme shall contain adequate provisions for ensuring transparency and 
accountability at all level of implementation.  
14. Provisions for regular inspection and supervision of works taken up under the Scheme shall 
be made to ensure proper quality of work as well as to ensure that the total wages paid for 
the completion of the work is commensurate with the quality and quantity of work done.  
15. The District Programme Coordinator, the Programme Officer and the Gram Panchayat 
implementing the Scheme shall prepare annually a report 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 and on payment of 
such fee as may be specified in the Scheme.  
16. All accounts and records relating to the Scheme shall be made available for public scrutiny 
and any person desirous of obtaining a copy or relevant extracts therefrom may be provided 
such copies or extracts on demand and after paying such fee as may be specified in the 
Scheme.  
17. A copy of the muster rolls of each Scheme or project under a Scheme shall be made 
available in the offices of the Gram Panchayat and the Programme Officer for inspection by 
any person interested after paying such fee as may be specified in the Scheme. ---- @  
SCHEDULE II (See section 5) CONDITIONS FOR GUARANTEED RURAL EMPLOYMENT UNDER A 
SCHEME AND MINIMUM ENTITLEMENTS OF LABOURERS 
1. The adult members of every household who- (i) reside in any rural areas; and (ii) are willing 
to do unskilled manual work, may submit their names, age and the address of the household 
to the Gram Panchayat at the village level (hereafter in this Schedule referred to as the Gram 
Panchayat) in the jurisdiction of which they reside for registration of their household for 
issuance of a job card.  
2. It shall be the duty of the Gram Panchayat to register the household, after making such 
enquiry as it deems fit and issue a job card containing such details of adult members of the 
household affixing their photographs, as may be specified by the State Government in the 
Scheme.  
3. The registration made under paragraph 2 shall be for such period as may be laid in the 
Scheme, but in any case not less than five years, and may be renewed from time to time.  
4. 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.  
5. All registered persons belonging to a household shall be entitled to employment in 
accordance with the Scheme made under the provisions of this Act, for as many days as each 
applicant may request, subject to a maximum of one hundred days per household in a given 
financial year.  
6. The Programme Officer shall ensure that every applicant referred to in paragraph 5 shall be 
provided unskilled manual work in accordance with the provisions of the Scheme within 
fifteen days of receipt of an application or from the date he seeks work in case of advance 
application, whichever is later: Provided that 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 under this Act. 
7.  Applications for work must be for at least fourteen days of continuous work.  
8. 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 
9. Applications for work may be submitted in writing either to the Gram Panchayat or to the 
Programme Officer, as may be specified in the Scheme.  
10. The Gram Panchayat and Programme Officer, as the case may be, shall be bound to accept 
valid applications and to issue a dated receipt to the applicant. Group applications may also 
be submitted.  
11. 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 and by a public notice displayed at the office 
of the Panchayats at the district, intermediate or village level.  
12. As far as possible, employment shall be provided within a radius of five kilometres of the 
village where the applicant resides at the time of applying.  
13. A new work under the Scheme shall be commenced only if- (a) at least fifty labourers 
become available for such work; and (b) the labourers cannot be absorbed in the ongoing 
works: Provided that this conditi

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