The objective of the Ayyankali Urban Employment Guarantee Scheme is to enhance livelihood security in urban areas by providing at least 100 days of wage employment to every household whose adult members are willing to do unskilled manual labour. Creation of durable community assets and strengthening the livelihood resource base of the urban poor is also envisaged under the scheme. The scheme is structured in the pattern of Mahatma Gandhi National Rural Employment Guarantee Scheme and is designed in such a way that at least 50% of the beneficiaries shall be women who have registered and demanded for work under the scheme.

 Convergence of PMAY- LIFE with Ayyankali Urban Employment Guarantee scheme has been ensured. Dairy farming has also been introduced under the scheme. In order to provide maximum workdays and ensure smooth implementation of the scheme, essential tools and small machines required for work can be provided under this scheme. Works related to water conservation, land development and agriculture related activities, solid waste management, urban afforestation and activities for carbon neutrality can be undertaken under this scheme. Cleaning of drainage and streets on a regular basis can also be included. The scheme shall be implemented in convergence with the schemes and programmes of urban local governments.