VB-G Ram G Bill 2025: 5 Big Changes That Will Replace MGNREGA

The NDA government has taken a new and significant step for rural India by introducing the Viksit Bharat—Guarantee for Employment and Livelihood Mission (Gramin), or VB-G Ram G Bill, 2025. This bill will replace the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, and will bring several important changes to the rural employment guarantee system.

VB-G Ram G Bill 2025: What Is It?

While this new bill proposes to provide more days of employment to rural families, it could also increase the financial burden on states. Additionally, for the first time, a provision for a "break" or temporary suspension in employment guarantee has been included.

Let's understand in simple terms the five major changes proposed in the VB-G Ram G Bill 2025.

5 Major Changes in VB-G Ram G Bill 2025

1. Employment Guarantee Increased to 125 Days

• Under the VB-G Ram G Bill, every rural household is now proposed to receive 125 days of guaranteed employment in a financial year. Currently, the limit under MGNREGA is 100 days.
• Although the MGNREGA Act states "at least 100 days," in practice, this has become the maximum limit, as the software does not allow recording more than 100 days of work unless a special request is made by the state.
• Currently, additional days are provided in certain specific circumstances, such as:
• Up to 150 days of work for Scheduled Tribe (ST) families living in forest areas
• An additional 50 days of employment in case of drought or natural disaster.
• The new bill clarifies this system and makes the 125-day guarantee the standard.

2. Wage Cost Sharing Between Centre and States

A major change in the VB-G Ram G Bill is the funding pattern. Currently, the central government bears the entire cost of unskilled wages under MGNREGA, but the new bill requires states to also contribute a share of the wages. The proposed fund sharing will be as follows:

• Northeastern states, Himalayan states, and some Union Territories – 90:10 (Centre:State)
• Other states and Union Territories with legislative assemblies – 60:40
• Union Territories without legislative assemblies – the entire expenditure will be borne by the Central Government
• This change clearly indicates that it could put additional pressure on state treasuries.

3. Normative Allocation Replaces Labour Budget

Until now, under MGNREGA, states submitted a labour budget every year based on their needs, which was determined by the demand for work. However, the VB-G Ram G Bill has replaced this with “Normative Allocation.”

This means:

• The Central Government will pre-determine the amount each state will receive.
• If a state spends more than the allocated amount, the state government will have to bear the additional cost itself.
• In other words, there will no longer be open-ended funding like under MGNREGA.

4. Temporary Suspension During Agricultural Season

• This is considered the newest and most controversial change. For the first time, the VB-G Ram G Bill includes a provision to suspend employment guarantee during the peak agricultural season.
• During the sowing and harvesting seasons
• For a total of 60 days in a financial year
• No work will be provided during these days
• State governments will be able to issue separate notifications for different districts, blocks, or panchayats.
• The government says this will prevent a shortage of labourers during the agricultural season, but it also means that the time available to avail of 125 days of employment will be reduced.

5. Weekly Wage Payment Rule

Under the VB-G Ram G Bill, there is now a provision for paying wages to labourers every week. Currently, the maximum limit for wage payment under MGNREGA is 15 days.

According to the new bill:

• Wages will be paid on a weekly basis
• Or payment must be made within a maximum of 15 days

If there is a delay in payment, labourers will receive compensation as before. Wage rates will remain the same as those determined under MGNREGA.

Q1. What is VB-G Ram G Bill 2025?

VB-G Ram G Bill 2025 is a proposed law to replace MGNREGA and reform rural employment and livelihood guarantees.

Q2. How many days of employment are guaranteed under the new bill?

The bill proposes 125 days of guaranteed employment, compared to 100 days under MGNREGA.

Q3. Will states have to pay wages under VB-G Ram G Bill 2025?

Yes, wage costs will now be shared between the Centre and states under a new funding formula.

Q4. Can employment be suspended under the new bill?

Yes, work can be temporarily suspended for up to 60 days during peak agricultural seasons.

Q5. How often will wages be paid?

Wages will be paid weekly, or within a maximum of 15 days.