National Rural Employment Guarantee Act 2005

National Rural Employment Guarantee Act 2005 is a law whereby any adult who is willing to do unskilled manual work at the minimum wage rate (notified for agricultural labour prescribed in the state) is entitled to being employed on public works within 15 days of applying. If work is not provided within 15 days, he/she is entitled to an unemployment allowance.

The Act was notified on September 2005. The Act provides a legal guarantee of 100 days of wage employment in a financial year to every rural household. The objective of the Act is to supplement wage employment opportunities in rural areas and in the process also build up durable assets.

The Act will extend to the entire country within five years of its notification. In the first phase, the Act was notified on February 2nd 2006 in 200 districts. In the second phase, the Act was notified on 130 additional districts on April 1, 2007.