The new wage programme will replace MGNREGA under a proposed law that the Union government plans to table in Parliament, which has triggered serious concern among researchers, labour unions, and civil society organisations. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a historic rights-based statute that has influenced rural life for 20 years, is to be repealed under the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G Bill). Critics contend that the new framework significantly alters the legal foundation of rural employment, despite the government’s portrayal of it as an improved, more effective employment objective.

The measure raises essential issues regarding sustainability, federalism, and the constitutional right to employment by replacing MGNREGA’s demand-driven structure with a centrally managed, budget-capped approach.

How Does the New Bill Change the Right to Work in Rural India?

Critics claim that making it a discretionary plan undermines the right to work.

• Rural households are legally entitled to 100 days of employment on demand under MGNREGA.
• If you don’t find a job within 15 days, you will be eligible for a legally enforceable unemployment benefit.
• The RAM G of VB-G. The bill eliminates this demand-driven guarantee and replaces it with state-specific “normative allocations” determined by the center.
• Employment ceilings and central announcements take precedence over worker demand.

Advocates for labor rights claim that this change represents a significant regression. Advocate Purbayan Chakraborty contends that by converting a legal entitlement into a plan subject to presidential discretion, the proposed law essentially repeals the right to labor. Practically speaking, employees would no longer be able to claim employment as a matter of right; instead, they would depend on the center’s availability of funds and approvals.

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What Happens When Funding Follows Budgets Instead of Demand?

By limiting spending up front, it restricts employment options.

• Funding is determined by demand under MGNREGA.
• The new law permits the center to set annual state-by-state grants.
• State governments are responsible for paying for any expenses that exceed this cap.
• States with lower incomes might not be able to support the increased demand for employment.

Researchers caution that this strategy runs counter to MGNREGA’s rationale. Instead of budgets growing to accommodate people’s requirements, demand will now have to “fit within a predetermined budget,” according to labor expert Carina Singh. This is especially problematic when rural communities primarily rely on wage work as a safety net, such as during years of drought, economic slowdown, or agrarian distress.

These worries are made worse by the updated cost-sharing mechanism. The majority of states will be responsible for 40% of the costs, while special category states will receive 90% of the funds from the federal government. This is a substantial rise above previous agreements, adding to the state’s financial burden and possibly deterring it from increasing employment.

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Does Increasing Workdays to 125 Days Really Help Workers?

Without universality, activists claim it provides no assurance.

• The bill increases each household’s maximum employment guarantee to 125 days.
• However, central notification of rural regions that qualify is necessary for execution.
• States must be able to pay their fair share of expenses.
• Employees in unnotified locations may have no legal rights at all.

On paper, the rise in days seems progressive, but experts contend that it is not enforceable. According to Chakradhar Buddha of LibTech India, an authentic guarantee must be universal. The promise of more extended workdays becomes symbolic rather than meaningful without it. The new wage programme will replace MGNREGA in name, but not necessarily in spirit, critics contend.

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How Will Mandatory Technology and Seasonal Restrictions Affect Workers?

Large-scale exclusion is a possibility, particularly for vulnerable populations.

• App-based monitoring and mandatory biometric authentication are necessary.
• Unreliable technology and bad connectivity are common problems in rural locations.
• Biometric errors have been shown to cause salary delays or denials in the past.
• Additionally, the bill prohibits employment during the busiest agricultural seasons.

According to activists, compulsory technology transforms a support system into a gatekeeper. Migrants, ethnic populations, women, and older workers are particularly susceptible to authentication errors. Seasonal limitations raise additional issues. Through plantations and soil protection, MGNREGA work frequently supports agriculture in tribal and rain-fed areas. Households may lose income for at least 2 months of the year if there is a legal prohibition during the agricultural months.

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Broader Implications for Democracy and Federalism

Critics claim that the bill centralizes power at the expense of workers, states, and gram sabhas, going beyond employment mechanics. The Union government is primarily responsible for deciding where work will be done, how much money will be allocated, and what technology will be used. They contend that this weakens the 73rd Amendment to the Constitution, which enhanced local self-governance.

The new wage programme will replace MGNREGA for more than 260 million registered workers, making the lack of broad consultation particularly troubling. Labor organizations emphasize that such reforms should result from discussion rather than unilateral legislative action.

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Final Thoughts

The VB-G RAM G Bill is characterized by labor movements and researchers as a reversal rather than a reform. The proposed law transforms rural employment into a centrally administered system by eliminating the demand-driven structure, capping budgets, raising state responsibilities, and requiring surveillance-heavy technologies. The new wage programme will replace MGNREGA not just administratively, but philosophically, moving away from a rights-based welfare model toward discretionary governance. The acceptance of this change by Parliament will have long-term effects on India’s social protection, rural livelihoods, and constitutional ideals.

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Frequently Asked Questions (FAQs)

Q1. Why is MGNREGA’s demand-driven structure significant?

It is a dependable social safety net, as it guarantees that anyone seeking work can lawfully claim it, particularly during times of economic hardship.

Q2. Will the new program reach all rural areas?

No. The central government would only provide jobs in rural areas, restricting access for all.

Q3. What would labor organizations prefer to this bill?

They are calling for the bill to be withdrawn and for MGNREGA to be strengthened through worker-friendly changes, regular payments, and sufficient financing.

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