Govt to bring Bill replacing MGNREGA with new rural job law guaranteeing 125 days of work
New Delhi, Dec 15: The government is set to introduce a bill in the Lok Sabha to repeal the Mahatma Gandhi National Rural Employment Guarantee Act and replace it with a new rural employment law that promises 125 days of wage employment per year.
The proposed legislation is titled Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025. According to the bill, it seeks to repeal the Mahatma Gandhi National Rural Employment Guarantee Act and introduce a new framework aligned with the national vision of Viksit Bharat 2047.
The bill has been listed in the supplementary list of business of the Lok Sabha. It provides a statutory guarantee of 125 days of wage employment in every financial year to every rural household whose adult members volunteer to undertake unskilled manual work. This is an increase from the current guarantee of 100 days under MGNREGA.
In the statement of purpose, Rural Development Minister Shivraj Singh Chouhan said that while MGNREGA has provided employment support to rural households for the past 20 years, further strengthening is required due to significant socio-economic changes in rural India and the expanded reach of social security schemes.
The new bill focuses on empowerment, growth, convergence and saturation, with an emphasis on creating durable rural infrastructure. Key areas include water security, core rural infrastructure, livelihood-related assets and special works to mitigate extreme weather events. The bill also aims to ensure availability of farm labour during peak agricultural seasons, allowing states to temporarily suspend works during sowing and harvesting periods if needed.
It proposes integrating village-level development plans with PM Gati Shakti to better address local needs. A strong digital framework has also been outlined, including biometric authentication, GPS or mobile-based worksite monitoring, real-time dashboards, public disclosures and the use of artificial intelligence for planning, audits and fraud risk mitigation.
The scheme will be centrally sponsored, but states will be required to frame their own schemes within six months of the law coming into force. The Centre will allocate funds to states based on fixed parameters, while any spending beyond the approved allocation will be borne by the respective state governments.
The MGNREGA law, enacted in 2005, guarantees at least 100 days of wage employment to rural households. The new bill seeks to expand this guarantee and reshape rural employment policy as part of the government’s long-term development vision.
The Winter Session of Parliament of India began on December 1 and will conclude on December 19.
