President Droupadi Murmu on Sunday gave her assent to the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, formally clearing the way for the new rural employment law to replace the Mahatma Gandhi National Rural Employment Guarantee Act.

The VB-G RAM G Bill, 2025 was passed by both Houses of Parliament amid protests by Opposition parties.

It was cleared by the Lok Sabha on Thursday, even as Opposition members objected to the removal of Mahatma Gandhi’s name from the scheme. It was passed by the Rajya Sabha after midnight on Friday.

The MGNREGA was introduced in 2005 by the Congress-led United Progressive Alliance and aimed at enhancing the livelihood security of households in rural areas. The scheme guaranteed 100 days of unskilled work annually for every rural household that wants it, covering all districts in the country.

Under the new law, the number of guaranteed workdays will increase to 125, while states’ share of costs will rise to 40%. The Centre will continue to bear the wage component, with states sharing material and administrative expenses.

The legislation has drawn criticism from economists and labour rights experts.

On Thursday, Nobel laureate Joseph Stiglitz and nine other academics wrote an open letter to the Union government warning that repealing MGNREGA would be a “historic error”.

Several experts have also cautioned that provisions in the new law could lead to inequitable access to work and incentivise distress migration, particularly as the Centre will identify the rural areas where employment will be provided.

Concerns have also been raised about a provision allowing a 60-day pause in guaranteed work during agricultural seasons, with labour rights groups warning that it could weaken workers’ bargaining power and leave farm labourers vulnerable to exploitation.

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