For millions of rural Indians, MGNREGA is more than just a government scheme—it is often the difference between hunger and hope. For nearly two decades, it has provided, at the margin, wage employment to those who need it most.
It’s now going to see significant changes as the government once again alters not just the name but also crucial aspects of the law itself.
On the 15th December 2025, the government introduced a new law titled the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, which aims to replace MGNREGA. The proposed programme increases the guaranteed employment from 100 days to 125 days per household.
However, the structure of the scheme is significantly different from the existing demand-driven model. Although the law guarantees 100 days of work per rural household each year, in reality, workers have received around 50 days on average, highlighting long-standing gaps between policy and implementation. Now, with the government proposing major changes, rural employment in India stands at a critical turning point.
One of the important changes is regarding “pause for farm work” i.e. during peak sowing/harvesting seasons MGNREGA work stops. This prevents labour shortage during critical farm operations and avoids labour being diverted away to guaranteed – wage worksite.
Under MGNREGA, employment was demand-driven, meaning any adult in a rural household could demand work, and the government was legally required to provide it. In contrast, the new programme will function on the basis of planned budgets and pre-approved work allocations. Critics of this new NREGA policy include Congress leaders like Mallikarjun Kharge, Priyanka Gandhi and Shashi Tharoor, TMC leader Derek O’Brien and Akhilesh Yadav of Samajwadi Party like argue that this change weakens the legal “right to work,” as employment will no longer be guaranteed on demand.
Another major change relates to funding. Earlier, the Central government bore 100% of the wage cost under MGNREGA. Under the new framework, funding will be shared between the Centre and the states in a 60:40 ratio, increasing states’ dependence on their own financial capacity. This has raised concerns that poorer states may struggle to provide sufficient employment. This may lead to uncertainty in the functioning of the scheme in the States.
The centre’s ally in Andhra Pradesh Telegu Desam Party (TDP) has expressed concerns regarding fund sharing of 40% as it would put a lot of burden on the state, as mentioned by the Finance, Planning, and Legislative Affairs Minister.
Wage payments under India’s employment guarantee system are made through Direct Benefit Transfer (DBT) directly into workers’ bank accounts, improving transparency and reducing corruption. Payments are usually made weekly, and the law mandates that wages must be credited within 15 days of work completion. Wage rates are fixed by the Central Government and revised periodically, though states may choose to pay higher wages. If work is not provided within 15 days of demand, workers are entitled to an unemployment allowance, ensuring income security. The proposed new law places greater emphasis on technology and digital monitoring to strengthen accountability.
The new scheme also places greater emphasis on the creation of permanent rural assets, including water conservation structures, roads, irrigation facilities, and climate-resilient infrastructure. Additionally, weekly wage payments are proposed to reduce delays faced by workers.
While the government believes these reforms will improve efficiency and planning, many experts and activists argue that MGNREGA’s greatest strength was its strong legal guarantee. The debate continues over whether the new programme will offer the same level of protection to rural workers.