5 key differences between proposed VB-G Ram G Bill and MNREGA

Union government will replace the Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA) with Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) VB—G RAM G BILL, 2025.

A bill to repeal the MGNREGA, the country’s flagship job scheme, and bring a new law for rural employment - Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) - has been circulated by the government among the Lok Sabha members, news agency PTI quoted unnamed sources.

According to a copy of the bill, it seeks to introduce the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, in Parliament and repeal the Mahatma Gandhi National Rural Employment Guarantee Act of 2005.

It says the bill is aimed at establishing a "rural development framework aligned with the national vision of Viksit Bharat 2047, by providing a statutory guarantee of one hundred and twenty-five days of wage employment in every financial year to every rural household whose adult members volunteer to undertake unskilled manual work; to promote empowerment, growth, convergence and saturation for a prosperous and resilient rural Bharat".

The bill has been circulated among the members of the Lok Sabha, and is likely to be introduced in the House. The Winter Session of Parliament, which started on December 1, will conclude on December 19.

The new programme, which will provide 125 days of unskilled manual labour, “will focus on empowerment, growth, convergence and saturation through public works aggregating into forming Viksit Bharat National Rural Infrastructure Stack, with a thematic focus on water security through water-related works, core rural infrastructure, livelihood-related infrastructure and special works to mitigate extreme weather events.”

Here are 5 changes in the new law

1. Number of wage employment days: The VB-G Ram G Bill has proposed a guarantee of employment for 125 days in a financial year to every rural household whose adult members volunteer for unskilled manual work.

Existing MGNREGA guarantees 100 days of wage employment in a financial year.

2. Centre to share burden of funding: The VB-G Ram G Bill has proposed changed in funding patterns too.

Unlike the MGNREGA, where the Centre is responsible for paying the entire wage bill, states will have to share the burden of the wage payment under the new law – the VB-G Ram G.

“For the purposes of this Act, the fund-sharing pattern between the Centre and the state governments shall be 90:10 for the Northeastern States, Himalayan states, and Union Territories (Uttarakhand, Himachal Pradesh, and Jammu and Kashmir), and 60:40 for all other states and Union territories with legislature,” states Section 22 (2) of the Bill.

Under the MGNREGA, the Centre meets the cost of wages for unskilled manual work under the scheme, up to three-fourths of the material cost of the scheme, including payment of wages to skilled and semi-skilled workers.

The state governments are responsible for meeting the cost of unemployment allowance payable under the Scheme; one-fourth of the material cost of the Scheme, including payment of wages to skilled and semi-skilled workers, subject to the provisions of Schedule II; and the administrative expenses of the state council.

3. Normative Allocation: As per Section 4 (5) of the new bill, “the Central Government shall determine the State-wise normative allocation for each financial year, based on objective parameters as may be prescribed by the Central Government.”

“Any expenditure incurred by a State in excess of its normative allocation shall be borne by the State Government in such manner and by such procedure as may be prescribed by the Central Government,” states Section 4(6) of the Bill.

The Bill defines ‘normative allocation’ as “the allocation of the fund made by the Central Government to the State.”

4. Pause during agricultural season: The VB-G Ram G Bill introduces provisions to pause the employment guarantee during peak agricultural seasons. The idea is to facilitate “adequate agricultural labour availability during peak agricultural seasons.”

“Notwithstanding anything contained in this Act or rules made thereunder, and to facilitate adequate availability of agricultural labour during peak agricultural seasons, no work shall be commenced or executed under this Act, during such peak seasons as may be notified under sub-section (2),” reads Section 6(1) of the VB-G Ram G-Bill.

5. Weekly wage payment: The VB-G Ram G-Bill envisages payment of wages to workers every week, unlike MGNREGS, which has a 15-day limit.

“The disbursement of daily wages shall be made on a weekly basis or in any case not later than a fortnight after the date on which such work was done,” it reads.

(With PTI inputs)