INDIA’SNATIONAL RURAL EMPLOYMENT    GUARANTEE ACT 2005         Reetika Khera         November 2011            Brasilia    ...
Employment Guarantee andthe Right to Work a step towards the right to work, as an aspect of   the fundamental right to liv...
NREGA in a Nutshell The National Rural Employment Guarantee Act 2005 is a law whereby: any adult who is willing to do unsk...
The Unemployment Allowance If employment is not provided within 15 days, the applicant is entitled to an unemployment allo...
Workers Entitlements  Demand-driven, 100 days/household/year  Payment of minimum wage, within a   fortnight  Worksite f...
NREGA: Cost sharing    Central Government to pay for:       wage costs,      75% of material costs, and      some admi...
NREGA - The larger vision    Social security, protection against hunger    Right to life with dignity    Asset creation...
Asset creation under NREGA                             8
NREGA: Employment Generation and       Expenditure, 2007-8*Total:• Employment                                        144 c...
Share of Disadvantaged Groups in      NREGA Employment • Women:                   42% • Scheduled Tribes (ST):   29% • Sch...
NREGA workers belong to the mostdisadvantaged social groups Proportion (%) of sample workers who are:                     ...
Minimum wages: getting there…                                                  Men         Women                          ...
The Challenge(s)      Political will vs politicization    Awareness levels    Delays in wage payments    UID-type of d...
Awareness levels are still very low Proportion (%) of sample workers who were aware of their entitlement to:       100 da...
Nrega (ipc ig brasilia)
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Nrega (ipc ig brasilia)

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India’s National Rural Employment Guarantee Act (NREGA)

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Nrega (ipc ig brasilia)

  1. 1. INDIA’SNATIONAL RURAL EMPLOYMENT GUARANTEE ACT 2005 Reetika Khera November 2011 Brasilia 1
  2. 2. Employment Guarantee andthe Right to Work a step towards the right to work, as an aspect of the fundamental right to live with dignity Article 39 of Directive Principles of the Constitution: The State shall, in particular, direct its policy towards securing— (a) that the citizens, men and women equally, have the right to an adequate means of livelihood; (b) that there is equal pay for equal work for both men and women 2
  3. 3. NREGA 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. 3
  4. 4. The Unemployment Allowance 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. 4
  5. 5. Workers Entitlements  Demand-driven, 100 days/household/year  Payment of minimum wage, within a fortnight  Worksite facilities: water, shade, medicines, crèches  At least 33% of labourers should be women 5
  6. 6. NREGA: Cost sharing  Central Government to pay for:  wage costs,  75% of material costs, and  some administrative costs.  State governments to pay for:  25% of material costs  other administrative costs,  unemployment allowance. 6
  7. 7. NREGA - The larger vision  Social security, protection against hunger  Right to life with dignity  Asset creation in rural areas  Unique opportunity for women  Revitalizing local government institutions and decentralized planning 7
  8. 8. Asset creation under NREGA 8
  9. 9. NREGA: Employment Generation and Expenditure, 2007-8*Total:• Employment 144 crore person-days – Expenditure Rs. 15,857 crores – Expenditure (as % of GDP) < 0.5%• Employment per job card: 22 person-days• Employment per rural household: 42 person-days employed on NREGA• Expenditure per district: Rs. 48 crores * Data pertains to the 330 districts covered under NREGA at the time. 10
  10. 10. Share of Disadvantaged Groups in NREGA Employment • Women: 42% • Scheduled Tribes (ST): 29% • Scheduled Castes (SC): 27% • SC/ST Combined: 56% 11
  11. 11. NREGA workers belong to the mostdisadvantaged social groups Proportion (%) of sample workers who are: Men Women  SC/ST 71 75  Illiterate 52 82  In “kachha” homes 81 81  Without electricity 77 62 Source: Drèze and Khera (2009). 12
  12. 12. Minimum wages: getting there… Men Women (Rs./day)  Agricultural wages 53 47  Other casual labour 71 53  NREGA wage* 85 85  Minimum wage* 88 88 * Unweighted average of worksite-specific figures. Source: Drèze and Khera (2009). 13
  13. 13. The Challenge(s)  Political will vs politicization  Awareness levels  Delays in wage payments  UID-type of disruptions  Administrative capacity  Corruption 14
  14. 14. Awareness levels are still very low Proportion (%) of sample workers who were aware of their entitlement to:  100 days of work 52  Minimum wage 56  Timely payment of wages 56 Source: Drèze and Khera (2009). 15

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