The Union government is preparing to introduce a major new rural employment law in Parliament during the ongoing Winter Session, which aims to replace the nearly 20-year-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with an updated legislative framework titled the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 commonly known as VB-G RAM G. Officials and government sources say the move is aimed at modernising the rural jobs system, improving implementation, and broadening the focus from wage employment alone to encompass overall rural economic support.

The proposed law represents a significant shift in India’s rural employment policy. MGNREGA, which was enacted in 2005, guarantees rural households at least 100 days of wage employment per year for unskilled manual work. The new Bill aims to increase the number of guaranteed employment days and introduce structural reforms, including changes in how funding is allocated and how the scheme functions at the state level.

According to government statements made ahead of the Bill’s introduction, the VB-G RAM G Bill, 2025, has several differences from the current MGNREGA framework:

Increase in Guaranteed Days: The new law is expected to increase the minimum days of employment available to rural households from 100 to 125 days each year.

Normative Funding: Sources say the scheme will move from a strictly demand-based model, where work was provided when rural households applied, to a normative funding model that plans work based on projected labour requirements and available resources.

Centrally Sponsored Structure: Unlike MGNREGA, which has been fully funded by the Centre, the new law is expected to follow a centrally sponsored scheme model, meaning cost-sharing with states. Government sources argue this will allow greater flexibility and planning at the state level, while also carrying greater financial responsibility for states.

Integration with Rural Economy: Officials have said the new law will link employment with broader rural economic activities, including agricultural work and livelihood support that goes beyond public works projects.

Transparency and Oversight: The government has indicated that the new law will include stronger mechanisms for digital oversight, transparency, and social protection, with the goal of reducing delays in payments and improving accountability.

Officials involved in drafting the new law have said the changes respond to longstanding issues observed under MGNREGA, such as inconsistent delivery of work and delays in wage payments. Government sources have noted that the normative funding model and expanded focus aim to make rural employment support more reliable and aligned with local economic needs.

A senior government official, speaking on condition of anonymity because the draft is yet to be formally tabled in Parliament, said the new law was drafted “to address inefficiencies in the existing MGNREGA framework and to ensure structured, predictable work opportunities” for rural households. While this quote is from an official source summarising the rationale behind the law, it reflects the government’s stated intention to make rural job guarantees more dependable and effective.

The proposed replacement of MGNREGA with the VB-G RAM G Bill has already drawn attention from political parties and rural policy experts.

Congress leader Priyanka Gandhi Vadra was among those to raise questions, particularly about the decision to remove Mahatma Gandhi’s name from the new scheme. She said, “We fail to understand the government’s intent in removing Mahatma Gandhi’s name from this important rural employment programme. Millions of rural households have come to associate this scheme with Gandhi’s ideals and the change raises questions about the motivation behind the renaming.”

Opposition figures have also expressed concerns about whether the increased number of days and the shift to normative planning will translate into real benefits on the ground. Some have argued that unless systemic issues such as delayed wage payments and administrative bottlenecks are resolved, the reforms could remain largely symbolic.

Officials and analysts note that the average number of employment days actually provided to rural households under MGNREGA in recent years has often been below the guaranteed 100 days, indicating implementation challenges. Data tabled in Parliament shows that between 2020-21 and 2024-25, the average number of employment days provided per household ranged around 50 days, far below the legal entitlement.

In a written reply to the Rajya Sabha in early December, the government acknowledged this reality but said it was working with states to ensure better delivery. It stated, “The Ministry regularly reviews implementation with states/UTs to ensure adherence to the provisions of the Act and provide timely employment as per demand. As of December 8, 2025, 99.81 per cent of rural households demanding work have been offered employment,” highlighting efforts to improve responsiveness.

MGNREGA’s challenges include delays in wage payments, uneven distribution of work across states, and logistical issues in rural areas. Rural workers have sometimes complained about inconsistent engagement or non-payment of wages due to administrative and technical problems. Government defenders of the new law argue that these very issues informed the design of the replacement framework.

One official involved in consultation meetings said the shift in approach was needed because “the rural job guarantee must evolve based on needs of workers and local realities including seasonal labour demands and agricultural cycles,” adding that the new framework aim,s to be more adaptive and context-based.

When the VB-G RAM G Bill, 2025, is formally introduced in the Lok Sabha, it will be accompanied by copies distributed to Members of Parliament, allowing them time to review the provisions before debate and voting. Parliamentary observers expect discussion on funding patterns, the impact on state budgets, and mechanisms to ensure accountability and transparency.

Once introduced, the legislation will undergo debate and scrutiny in both houses of Parliament. If approved by the Lok Sabha and Rajya Sabha and given the President’s assent, it will replace the Mahatma Gandhi National Rural Employment Guarantee Act as India’s primary rural employment law.

Supporters of the reform argue that the new law could provide a more structured and predictable employment regime for rural workers, potentially increasing work availability and connecting employment opportunities with broader livelihood enhancement initiatives.

Critics, however, question whether the move will effectively address issues at the grassroots, such as delayed wages, administrative gaps, and the need for stronger rural infrastructure that can generate sustainable job opportunities beyond manual labour.

Despite the debate, the government maintains that the transition from MGNREGA to the VB-G RAM G framework is designed to strengthen rural employment support by adapting to contemporary challenges and improving efficiency.