New Labour Codes and Viksit Bharat Bill Replace MGNREGA – Implications for Rural Informal Workers

The government has recently overhauled its labour and rural‑employment architecture by rolling out the Labour Codes and enacting the Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 . The new law replaces the long‑standing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) , raising concerns about the welfare of informal workers and the broader rural populace. Key Developments Consolidation of over 40 labour statutes into four Labour Codes aimed at easing regulatory burden on enterprises. Passage of the Viksit Bharat‑Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 , which repeals MGNREGA and introduces a new employment guarantee mechanism. Official narrative asserts that inequality is now a lesser concern compared with the early 2010s, despite persistent data‑quality issues. Recognition that data comparability challenges hinder a clear assessment of the impact of these reforms. Important Facts • The Labour Codes were operationalised in 2024, covering wages, social security, occupational safety and industrial relations. • The Viksit Bharat‑Guarantee Bill, introduced in 2025, promises a flexible, demand‑driven employment model, but reduces the guaranteed days of work from 100 to 75 per year. • Critics argue that the shift may dilute the social safety net for informal workers , who constitute roughly 90% of India’s workforce. UPSC Relevance Understanding these policy shifts is crucial for GS‑3 (Economy) and GS‑2 (Polity) papers. The reforms illustrate the government's approach to labour market liberalisation, fiscal prudence, and rural development. Aspirants should analyse the trade‑off between ease of doing business and social protection, and assess how the narrative of reduced inequality aligns with ground‑level realities. Way Forward • Strengthen monitoring mechanisms to ensure that the new employment guarantee delivers real wages to the rural poor. • Address data comparability by standardising survey methodologies, enabling reliable impact assessment. • Consider hybrid models that retain the core protective features of MGNREGA while incorporating the flexibility envisioned in the Viksit Bharat‑Guarantee Bill.