The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an Indian Act of Parliament, passed on August 23, 2005, that guarantees the "right to work" to rural citizens. It was originally known as the National Rural Employment Guarantee Act (NREGA) and was implemented starting February 2, 2006. The Act was created to address the chronic problems of unemployment and poverty in rural areas by providing a social safety net and reducing migration to urban centers.
The core mechanism of the Act, outlined in its long title, was to provide at least 100 days of guaranteed wage employment in every financial year to every rural household whose adult members volunteer to do unskilled manual work. Key provisions include the entitlement to an unemployment allowance if work is not provided within 15 days of application. The work is generally provided within a 5 km radius of the applicant's residence. The Act mandates a minimum of one-third of the beneficiaries be women and requires a 60:40 ratio for wage and material costs in projects. Section 17 of the Act specifically mandates a Social Audit of all works executed to ensure transparency and accountability, with the Gram Sabha being the primary forum for this. The scheme is implemented by the Ministry of Rural Development, with the Panchayati Raj Institutions (PRIs) playing a lead role in planning and monitoring.
The MGNREGA was recently replaced by the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB–G RAM G), 2025. This new legislation, which received the President's assent on December 21, 2025, replaced the MGNREGA entirely. The VB–G RAM G Act, 2025 enhances the guaranteed employment from 100 days to 125 days per rural household. However, it also introduces a temporary pause period of up to 60 days during peak agricultural seasons and shifts the funding pattern to a 60:40 split between the Centre and most States, unlike the MGNREGA, where the Central Government bore 100% of the unskilled labor costs.