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Centres New Rural Employment Bill: Replacing MGNREGA, Key Changes and Criticisms

The Centre plans to replace MGNREGA with the Viksit Bharat Rozgar Bill, increasing guaranteed workdays to 125. However, critics warn of a higher financial burden on states and a fundamental shift from MGNREGAs demand-driven nature.

| Updated on: Dec 15, 2025 | 04:02 PM

The Indian Centre is preparing to introduce a new rural employment bill in Parliament, aiming to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005. Titled Viksit Bharat Guarantee for Rozgar and Aajivika Mission Grameen (VBG RAMG Bill 2025), the proposed legislation seeks a significant overhaul of the existing framework.

Under the new bill, the guaranteed workdays for rural labourers are set to increase from 100 to 125. However, this change is met with criticism regarding its financial implications. Unlike MGNREGA, where the Centre bore the full wage cost, the new law proposes that states, excluding northeastern Himalayan states and select union territories, will have to bear 40% of the total expenditure.

Critics argue this represents a higher financial burden on states and a fundamental shift from MGNREGA's demand-driven approach. The opposition has already voiced strong concerns regarding these proposed changes.