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How MGNREGA acted as safety net for casual labour

Business Standard

|

December 20, 2025

VB-G RAM G could weaken casual labour’s bargaining power, according to civil society groups

- SANJEEB MUKHERJEE

How MGNREGA acted as safety net for casual labour

One of the most contentious provisions of the new rural employment Bill — which seeks to replace the 20-year-old MGNREGA — is that itempowers the states to pause the scheme for 60 days of their choice during peak sowing and harvest seasons.

The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, which was passed by the Parliament on Thursday drew flak from several quarters over this provision.

A section of civil society claimed that it will reduce the bargaining power of manual casual labour, as MGNREGA acted as a safety net and a fallback option if farms did not give them a better deal in terms of wages.

Data shows that typically, work demand for MGNREGA dipped from July to November in each financial year, coinciding with peak kharif and rabi sowing and harvest seasons across most parts of India.

This was also the time when perhaps farms offered better wages to these workers during sowing or harvesting time, or MGNREGA wages were so low that they were not the first choice for workers and only acted as a safety net in times of crisis.

With this safety net gone, civil society groups and activists say that it could open the labour market to exploitation.

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