The Bill replaces the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA), which had been in force for about twenty years.
It was introduced by the Union Agriculture Minister to create a modern law aligned with the Viksit Bharat 2047 vision.
Guaranteed wage employment is increased from 100 days to 125 days per rural household for adults doing unskilled manual work.
Under MGNREGA, the law guaranteed not less than 100 days, and extra days were allowed only during droughts or for some tribal areas.
The Bill introduces a 60-day agricultural pause during peak sowing and harvesting seasons.
The purpose of the agricultural pause is to ensure availability of labour for farming activities.
Under MGNREGA, the Central Government paid 100 percent of unskilled wages and 75 percent of material costs, resulting in a 90:10 Centre - State funding pattern.
The new scheme works as a Centrally Sponsored Scheme (CSS) with 90:10 funding for North-Eastern and Himalayan States, 60:40 for other States, and 100 percent Central funding for Union Territories without legislatures.
MGNREGA was demand-based, universal, and allowed the budget to increase based on need.
The new Bill allows the Union Government to notify specific rural areas in a State for implementation.
The Bill mandates the creation of the Viksit Bharat National Rural Infrastructure Stack.
All works under the scheme will be brought together under this single national infrastructure framework.
The framework integrates Viksit Gram Panchayat Plans with the Pradhan Mantri (PM) Gati Shakti National Master Plan.
Works are grouped into four areas: water security, core rural infrastructure, livelihood-related infrastructure, and disaster mitigation.
The Bill makes biometric attendance compulsory for workers.
It also mandates Artificial Intelligence (AI) based fraud detection, Global Positioning System (GPS) tracking of worksites, and weekly public disclosure of scheme data by law.