In a significant policy shift, the Central Government has renamed the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to Pujya Bapu Gramin Rozgar Guarantee Yojana. The decision, made public on December 12, 2025, marks a new chapter for India's flagship rural employment scheme. Alongside the name change, the government has increased the minimum guaranteed employment under the scheme to 125 days and revised the minimum wage to Rs 240 per day.
The scheme, first introduced in 2005 as the National Rural Employment Guarantee Act (NREGA), was later renamed MGNREGA. As one of India's most significant social security initiatives, the program is built on the principle of ensuring the “right to work”. The core objective is to enhance livelihood security for unskilled rural households.
Under the existing framework, the scheme mandated providing at least 100 days of paid employment to adult members of rural families who volunteer to work. The latest revision expands this to 125 days, strengthening income support for rural communities. The government aims to make the scheme more impactful by aligning it with current socio-economic needs.
Senior government functionaries stated that the amended Bill was cleared by the Union Cabinet in its meeting held on Friday (December 12, 2025). While there was no official announcement on the proposal at the Cabinet briefing addressed by Union Minister Ashwini Vaishnaw, the Bill is likely to be introduced in the ongoing Winter session of Parliament.
Officials emphasized that the renaming reflects Gandhian ideals of rural empowerment, while the expansion of employment days and wages addresses livelihood challenges in villages. The evolution of the scheme highlights its growing importance: * 2005: Launched as NREGA * Later: Renamed MGNREGA * 2025: Now renamed Pujya Bapu Gramin Rozgar Guarantee Yojana
In 2022, the government appointed a panel headed by former Union Rural Development Secretary Amarjeet Sinha to review the scheme, especially the inter-State variations, particularly lower expenditure under the scheme in States with higher poverty rates, including Bihar, when compared with economically better-off States, including Tamil Nadu. The amended Bill is also likely to take into account the panel's recommendation, introducing exclusionary clauses based on economic indices of a State. The government is also likely to tweak the funding pattern. At present, the Centre bears 100% of the scheme's wage component.
The government could also introduce more checks to avoid situations such as prolonged standoff between the Centre and West Bengal government. The release of funds to West Bengal was stopped in March 2022 by the Centre owing to continued non-compliance with the directives of the Union government by the State. The Centre on December 6, 2025 issued orders for resumption of the scheme in the State following a Calcutta High Court order “subject to mandatory compliance with the special conditions”.
In the current NDA regime, the scheme's Budget for the first time crossed Rs 1,10,000 crore in 2020-21 in the aftermath of increased work demand during Covid. In a written reply to Parliament, the Centre said in 2024-25 the average number of employment days provided per household under MGNREGS was 50.24.
