The Union government has tabled a new rural employment Bill in the Lok Sabha that seeks to replace the Mahatma Gandhi National Rural Employment Guarantee Act, marking a structural shift in how rural jobs are guaranteed, funded, and administered in India. The new rural jobs bill raises the annual work limit but also alters the legal and financial foundations of the programme, triggering debate among states, labour groups, and policy experts.
- What changed in the new rural jobs bill
- Impact of the new rural jobs bill on the rural workforce
- Loss of legal entitlement to work
- Higher financial burden on states
- Reduced flexibility for rural workers
- Risk of worker exclusion through technology
- How the new rural jobs bill is designed to work
- Shift toward asset creation and development outcomes
- Greater central control over funding and execution
- Opposition to the new rural jobs bill and what comes next
What changed in the new rural jobs bill
The new rural jobs bill, formally titled the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, introduces several core changes to the existing framework.
- The annual work guarantee is increased from 100 days to 125 days per rural household.
- The legally enforceable right to demand work under MGNREGA is removed. Employment will now be provided within a capped allocation decided annually by the Union government.
- The scheme shifts from a demand-driven model to a supply-driven structure, with work offered only within pre-approved budgets.
- State-wise allocations will be determined by the Centre using objective parameters that are yet to be disclosed.
- Unlike MGNREGA’s universal rural coverage, the new rural jobs bill allows the Centre to notify specific districts or regions where employment will be available.
- A provision allows work to be paused for up to 60 days during peak agricultural seasons.
- The funding formula changes to a 60:40 cost-sharing model between the Centre and most states, while northeastern and Himalayan states retain a 90:10 structure.
- Technology-led controls such as Aadhaar-based payments, mobile attendance, and geotagging are made statutory.
Impact of the new rural jobs bill on the rural workforce
Loss of legal entitlement to work
Under MGNREGA, rural households could legally demand employment, and the Centre was obligated to fund work as demand increased. The new rural jobs bill removes this entitlement and replaces it with capped allocations, meaning households may be denied work even if demand exists on the ground.
Labour organisations argue this weakens employment security, especially during periods of drought, climate shocks, or rural economic stress.
Higher financial burden on states
A major concern around the new rural jobs bill is the sharp increase in states’ financial responsibility. With most states now required to fund 40 percent of programme costs, state governments may face fiscal pressure.
Estimates suggest states could collectively contribute close to ₹50,000 crore of an expected ₹86,000 crore programme cost next year. Critics warn that this may lead to delayed wage payments and uneven implementation across states.
Reduced flexibility for rural workers
The provision allowing work suspension during peak agricultural seasons alters the programme’s role as a fallback safety net. While the government argues this ensures labour availability for farming, labour groups say it restricts worker choice and limits income options during periods when non-farm work may still be needed.
Risk of worker exclusion through technology
The new rural jobs bill formally embeds Aadhaar-linked payments, app-based attendance, and digital monitoring into law. While officials cite transparency and efficiency, worker groups point to past instances of exclusion due to authentication failures, connectivity issues, and lack of digital access in rural areas.
How the new rural jobs bill is designed to work
Shift toward asset creation and development outcomes
According to the government, the new rural jobs bill places stronger emphasis on asset creation rather than short-term wage support. Priority areas include water conservation, climate-resilient infrastructure, rural connectivity, and livelihood-linked projects.
Officials say this approach aligns rural employment with long-term development goals and local planning priorities, rather than functioning purely as an income support mechanism.
Greater central control over funding and execution
The new rural jobs bill grants the Union government expanded authority over both funding and implementation. The Centre will determine annual state-wise allocations, identify eligible regions, and decide when employment can be paused.
Several administrative controls introduced in recent years are now written directly into the law. These include digital attendance systems, geotagged worksites, and centralised payment mechanisms.
The government argues that these measures reflect socio-economic changes in rural India, including improved infrastructure, financial inclusion, and digital penetration. In its Statement of Objects and Reasons, it frames the Bill as part of the broader Viksit Bharat @2047 vision.
Opposition to the new rural jobs bill and what comes next
The new rural jobs bill has drawn sharp criticism from labour organisations and architects of the original law. Nikhil Dey of the Mazdoor Kisan Shakti Sangathan described the proposal as ending the right to work in India. He described it as shifting of excessive power to the Centre.
The NREGA Sangharsh Morcha has called for the Bill’s immediate withdrawal, arguing that it converts a rights-based guarantee into a budget-constrained welfare scheme with limited accountability.
The Bill is expected to be debated during the ongoing parliamentary session. Its final shape will determine whether rural employment policy continues as a universal safety net or transitions into a centrally managed, allocation-based development programme under the rural jobs bill.
