5 key changes VB G Ram G Bill introduces in the rural job guarantee framework

The VB-G Ram G Bill will replace the Mahatma Gandhi National Rural Employment Guarantee (MGNREG) Act, 2005.

Here are five key changes in the present rural job guarantee framework, which VB-G Ram G Bill proposes:

1. Number of Guaranteed wage employment days

The VB-G Ram G Bill proposes a guarantee of employment for 125 days in a financial year to every rural household whose adult members volunteer for unskilled manual work. This is higher than the existing MGNREGA, which guarantees 100 days of wage employment in a financial year.

Section 3 (1) of the MGNREG Act provides for “not less than one hundred days” of work per rural household in a financial year. But it has become the de facto upper limit, as the NREGA software does not allow data entry for employment exceeding 100 days per household in a year unless specifically requested by the State/UT. The government, however, allows an additional 50 days of wage employment (beyond the stipulated 100 days).

For instance, every Scheduled Tribe household in a forest area is entitled to get 150 days’ work under NREGS, provided that such families have no other private property except for the land rights granted under the Forest Rights Act, 2016.

Besides, the government, under Section 3(4) of the MGNREGA, can also provide an additional 50 days of unskilled manual work in a year, over and above the 100 days, in such rural areas where drought or any natural calamity (as per the Ministry of Home Affairs) has been notified.

2. Centre to share burden of funding of the VB-G Ram G

One of the major changes the VB-G Ram G Bill introduces concerns the funding of the new scheme. Unlike the MGNREGS, where the Centre is responsible for paying the entire wage bill, states will have to share the burden of the wage payment under the VB-G Ram G.

“For the purposes of this Act, the fund-sharing pattern between the Centre and the state governments shall be 90:10 for the Northeastern States, Himalayan states, and Union Territories (Uttarakhand, Himachal Pradesh, and Jammu and Kashmir), and 60:40 for all other states and Union territories with legislature,” states Section 22 (2) of the Bill.

However, for the Union Territories without a legislature, the Centre will bear the entire expenses of the Scheme.

Under the MGNREGA, the Centre meets the cost of wages for unskilled manual work under the scheme; up to three-fourths of the material cost of the scheme, including payment of wages to skilled and semi-skilled workers subject to the provisions of Schedule II; such percentage of the total cost of the Scheme as may be determined by the Centre towards the administrative expenses, which may include the salary and allowances of the programme officers and his supporting staff, the administrative expenses of the Central Council, facilities to be provided under Schedule II and such other items as may be decided by the Centre.

The state governments are responsible for meeting the cost of unemployment allowance payable under the Scheme; one-fourth of the material cost of the Scheme, including payment of wages to skilled and semi-skilled workers, subject to the provisions of Schedule II; and the administrative expenses of the state council.

3. ‘Normative Allocation’ in place of labour budget: no open-ended funding to states

As per Section 4 (5) of the VB-G Ram G Bill, “the Central Government shall determine the State-wise normative allocation for each financial year, based on objective parameters as may be prescribed by the Central Government.”

“Any expenditure incurred by a State in excess of its normative allocation shall be borne by the State Government in such manner and by such procedure as may be prescribed by the Central Government,” states Section 4(6) of the Bill.

The Bill defines “normative allocation” as “the allocation of the fund made by the Central Government to the State”.

The normative allocation differs from the existing provision in the Labour Budget under MGNREGA. As per MGNREGA, before the beginning of each financial year, on or before January 31, all states shall present their annual work plan and labour budget to the Union Ministry of Rural Development. The labour budget is prepared based on the anticipated demand for unskilled manual work.

4. Pause in employment guarantee during agricultural season

The VB-G Ram G Bill introduces provisions to pause the employment guarantee during peak agricultural seasons. The provision is aimed at facilitating “adequate agricultural labour availability during peak agricultural seasons.”

“Notwithstanding anything contained in this Act or rules made thereunder, and to facilitate adequate availability of agricultural labour during peak agricultural seasons, no work shall be commenced or executed under this Act, during such peak seasons as may be notified under sub-section (2),” states Section 6(1) of the VB-G Ram G-Bill.

According to the Bill, the state governments will notify in advance, a period aggregating to 60 days in a financial year, covering the peak agricultural seasons of sowing and harvesting, during which works under this Act, will not be undertaken.

The state government may issue distinct notifications for different areas of the state, including districts, blocks or gram panchayats, based on agro-climatic zones, local patterns of agricultural activities or other relevant factors, and every such notification shall have a binding effect for the purposes of this Act, it states.

“All authorities responsible for planning, sanctioning or executing works under this Act shall ensure that all works are undertaken only outside the notified peak agricultural seasons,” as per the provisions of the Bill.

While the provision for a pause during the peak agriculture season addresses the concerns regarding the non-availability of labour for farm work, it effectively means that the window to avail the 125-day rural job guarantee will be shorter.

5. Weekly wage payment

The VB-G Ram G-Bill envisages payment of wages to workers every week, unlike MGNREGS, which has a 15-day limit.

“The disbursement of daily wages shall be made on a weekly basis or in any case not later than a fortnight after the date on which such work was done,” it states.

As per the MGNREGA provisions, “In case the payment of wages is not made within fifteen days from the date of closure of the muster roll, the wage seekers shall be entitled to receive payment of compensation for the delay, at the rate of 0.05% of the unpaid wages per day of delay beyond the sixteenth day of closure of muster roll.”

Under the new scheme (VB-G Ram G), the wages will be the same as notified under Section 6 of the MGNREGA. The VB-G Ram G-Bill retains the provision of payment of compensation for the delay in payment of wages.