The Union Cabinet has cleared a wide-ranging revamp of India’s largest rural employment programme, giving it a new identity and enhanced benefits for workers. The Mahatma Gandhi National Rural Employment Guarantee Act will now be implemented under the name Pujya Bapu Gramin Rozgar Yojana, reflecting what officials describe as a renewed push to strengthen livelihood security in villages.

As part of the reform package, the government has extended the guaranteed employment period under the scheme. Rural households will now be entitled to 125 days of assured work per year, up from the earlier limit of 100 days. The move is expected to provide additional income support, particularly during periods of low agricultural activity.

In another significant change, the daily wage rate under the programme has been revised to ₹240 per day, according to sources. The wage hike is likely to have a direct impact on millions of rural workers who rely on public employment for financial stability.

Launched in 2005 as NREGA, the programme was designed to provide a legal guarantee of wage employment to rural families willing to undertake unskilled manual labour. It was later renamed in honour of Mahatma Gandhi and has since evolved into a cornerstone of India’s rural development framework.

The scheme supports a wide range of labour-intensive works, including rural road development, water conservation structures, irrigation support, pond desilting, afforestation and horticulture-related activities. Over the years, it has helped boost village-level infrastructure, improved household incomes and increased workforce participation among women.