In a bid to improve the lives of people living below the poverty line, the government is working on an ambitious plan that guarantees employment for a specific period for poor families.

Inspired by India’s job guarantee scheme, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the government is drafting an Employment Guarantee Act which will provide a legal guarantee of employment for a specific time period for the poor.

The National Planning Commission (NPC) is all set to complete a draft of the Employment Guarantee Act. The act, if endorsed by parliament, will provide a legal guarantee for a specific time period of employment every fiscal year to one adult of a household of a particular region willing to do unskilled manual work at the prevailing wages for unskilled farm labour.  

NPC sources said the draft would be finalised on Friday by a team lead by the NPC member secretary. The NPC will study the draft and amend it if necessary and forward it to the Finance Ministry.  An NPC team had visited India recently to observe the execution of the MGNREGA in India.

“The time period of such employment is yet to be decided,” said the source, “In India, there is a legal guarantee of 100 days of employment, and it will probably be the same in our case.” According to the source, the government will generate employment by starting various construction and infrastructural development projects and the wage rate will be similar to that for unskilled farm labour. Since this employment scheme will be governed by an act, the government will have a legal obligation to implement it. And if the government fails to do so, it will have to pay compensation.  “If the government fails to generate and provide employment, it is required to pay cash as compensation,” said the source, “However, the compensation will be 50 to 60 percent of the fixed wage.”

Published on: 20 October 2011 | The Kathmandu Post