Table of Contents
Government Renames MGNREGA and Increases Rural Job Guarantee to 125 Days
What the Decision Is
- Name Change: On 12 December 2025, the government decided to change the name of MGNREGA. The scheme will now be called Pujya Bapu Gramin Rozgar (Guarantee) Yojana. For this, a law amendment will be brought in Parliament.
- Extended Guarantee: The annual employment guarantee for each rural household will be increased from 100 days to 125 days.
- Cabinet Approval: The decision was approved by the Union Cabinet during its meeting held in mid-December 2025. After this, the proposal will be discussed and passed in Parliament.
- Wage Revision: According to reports released after the Cabinet decision, the daily wage under the scheme may be increased to around ₹240 per day, though exact wages may differ from state to state.
- Higher Allocation: The government plans to increase the budget for the scheme so that extra workdays and higher wages can be properly funded.
Why the Government Says It’s Needed
- Low Utilisation: Government data reviewed in recent years showed that many rural families did not get the full 100 days of work.
- Income Support: The decision aims to help poor rural families earn more money, especially those who do not own land.
- Demand Boost: Officials say that higher rural earnings will increase spending in villages and support local markets.
- Climate Assets: As reiterated during the announcement, the scheme will continue to focus on useful village works like water conservation and land improvement.
- Scheme Rebranding: The government stated that the renaming reflects respect for Mahatma Gandhi’s ideas on dignity of labour.
Likely Implementation Changes
- Legal Amendment: Following the Cabinet decision of December 2025, a new Bill will be introduced in Parliament to officially change the scheme’s name and workday limit.
- Funding Mechanism: The government may revise funding rules after the Bill is passed to ensure smoother flow of money to states.
- Work Planning: Gram Panchayats will be instructed to plan additional works for the upcoming implementation phase.
- Monitoring Tools: Digital attendance systems and online payment tracking may be strengthened to reduce misuse.
- Payment Timelines: The government has promised better wage payment timelines after repeated complaints of delays.
Political Reactions and Concerns
- Opposition Criticism: Opposition parties have criticised the name change and said it is politically motivated.
- Legacy Debate: Critics argued that removing “Mahatma Gandhi” from the name affects the original identity of the scheme.
- Implementation Doubts: Concerns were raised over whether states will receive funds on time after the changes.
- Administrative Burden: State governments expressed worries about increased pressure on local officials due to extra workdays.
Important Questions
- Why did the Union Government decide to rename the MGNREGA scheme in December 2025?
- What is the purpose of increasing the MGNREGA employment guarantee from 100 days to 125 days?
- How will higher MGNREGA wages and additional workdays benefit rural households?
- What implementation challenges may state governments face after the MGNREGA expansion?
- Why has the renaming of MGNREGA triggered political opposition and public debate?
Conclusion
The December 2025 decision to rename MGNREGA and increase the guaranteed workdays to 125 days is aimed at strengthening rural employment and improving income security for poor households. By offering more work and better wages, the scheme can support village economies and act as a safety net during times of distress. However, its real success will depend on proper funding, smooth coordination between the Centre and states, and timely payment of wages to workers.
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