New Delhi: Parliament has approved the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), 2005.
The Bill, also referred to as the VB-G RAM G Bill, was passed by the Lok Sabha on 18 December and cleared by the Rajya Sabha later the same night amid protests by opposition members.
Opposition parties argued that the new legislation weakens the original intent of MNREGA, which legally guaranteed employment to rural households.
The government, however, maintained that the revised framework expands employment days and improves payment efficiency.
What Changes!
- Under the new law, guaranteed employment has been increased from 100 to 125 days annually.
- Wage payments, which earlier had a 15-day deadline, will now be made weekly. In case of delays beyond 15 days, workers will be entitled to compensation at the rate of 0.05 per cent of unpaid wages per day starting from the 16th day.
- The Bill allows state governments to notify a 60-day no-work period in advance to avoid labour shortages during peak agricultural seasons, with flexibility to issue region-specific notifications based on agro-climatic conditions.
- Unlike MNREGA, which was fully funded by the Centre, the new programme will operate as a centrally sponsored scheme. Funding will follow a 60:40 Centre–State ratio, while hilly and northeastern states will receive 90 per cent central support. Union Territories without legislatures will be fully funded by the Centre. States will continue to bear the cost of the unemployment allowance.
- The Centre will also determine state-wise annual work allocations based on objective criteria. Any expenditure beyond this allocation will be borne by the states.
- Planning oversight will shift to newly constituted national and state-level steering committees, though Panchayats will continue to play a role in implementation.
The government said the changes aim to make rural employment generation more structured, predictable and responsive to local conditions.
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