New Bill to Enhance Rural Employment Guarantee in India

Introduction of the 2025 Viksit Bharat Bill

The Indian government is set to unveil the 2025 Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, which aims to replace the existing 2005 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

This new legislation proposes to increase the guaranteed working days from 100 to 125 per year for each family under the current employment scheme.

Background of MGNREGA

MGNREGA was established in 2005 by the Congress-led United Progressive Alliance to improve livelihood security for rural households. The program guarantees 100 days of unskilled work annually for every rural household that requests it, covering all districts across the nation.

While the Union government covers the wage expenses, states are responsible for the costs associated with materials and administrative functions.

Funding Changes Under the New Bill

The proposed bill suggests that states will now be responsible for 40% of the costs, while governments in the North East, Himalayan states (Uttarakhand and Himachal Pradesh), and Union Territories with legislatures (like Jammu and Kashmir) will contribute 10% of the funding.

In Union Territories without a legislature, the Centre will cover all expenses.

The Union government will also set the state-wise normative allocation for each financial year based on specific objective criteria.

Implementation and Unemployment Allowance

The legislation stipulates that only the Union government can designate rural areas within a state for the scheme's implementation.

It maintains the provision for a daily unemployment allowance for individuals who do not receive work within 15 days of applying, with the cost of this allowance being the responsibility of state governments.

Concerns from Rights Groups

On Monday, NREGA Sangharsh, a rights organization representing MGNREGA workers, expressed that any modifications to the Act should only occur after thorough public disclosure and democratic discussions with laborers, workers' organizations, trade unions, and state authorities.

The group stated, 'We will oppose and resist this regressive step,' emphasizing that the law, born from workers' struggles, should not be altered through unilateral decisions.

Opposition's Critique

Opposition MP John Brittas criticized the Union government for stripping the 'soul of a rights-based guarantee law' and replacing it with a 'conditional, centrally controlled' scheme that disadvantages states and workers.

'This is cost-shifting by stealth, not reform,' he remarked, adding that the bill dismantles MGNREGA fiscally, institutionally, and morally.

This statement follows reports that the government is contemplating a revamp of MGNREGA, including an increase in guaranteed working days.

Calls for Increased Working Days

Several states have advocated for an increase in the maximum working days under the scheme.

In April, a parliamentary standing committee urged the government to raise the daily wages under MGNREGA to at least Rs 400 and increase the guaranteed working days to a minimum of 150.

Currently, daily wages under the scheme vary between Rs 241 and Rs 400 across different states.

Current Employment Statistics

Despite the law guaranteeing 100 days of work, the average employment provided per household under the scheme was only 50 days in the financial year 2024-’25.

Political Reactions

Recently, the Congress party remarked that the 'same MGNREGA that Narendra Modi once labeled a failure has proven to be a lifeline for rural India.'

Party leader Supriya Shrinate accused Modi of rebranding Congress' initiatives for his own benefit over the past 11 years.

The ruling Trinamool Congress in West Bengal also criticized the BJP government's decision to 'erase Mahatma' from MGNREGA, calling it an ideologically driven act rather than a mere administrative change.