The Karnataka government has agreed to implement the Centre’s new rural employment law, which replaces the Congress-era Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This marks a reversal of the previous Siddaramaiah-led government’s decision to challenge the law in the Supreme Court.
Background of the new law
The new law, officially titled the National Rural Employment Guarantee Act (Amendment) 2025, was passed by the Parliament in December 2025. It introduces significant changes to the original MGNREGA, including stricter work measurement norms, reduced wage payment timelines, and a cap on the number of days of employment per household from 100 to 75.
The previous Congress government in Karnataka, under Chief Minister Siddaramaiah, had opposed the amendments, arguing they diluted the rights of rural workers. In February 2026, the state cabinet decided to move the Supreme Court against the law, citing it as unconstitutional and detrimental to the livelihoods of millions.
Current government’s decision
However, after the change in government following the 2026 assembly elections, the new administration, led by Chief Minister DK Shivakumar, has reversed this stance. According to a government order issued on June 23, 2026, the state will now fully comply with the central law. The order states that all ongoing MGNREGA projects will be transitioned to the new framework within 60 days.
“The decision has been taken after careful consideration of the Centre’s assurances regarding adequate funding and flexibility for states,” said a senior official from the Rural Development Department, who spoke on condition of anonymity.
Impact on rural workers
The implementation of the new law is expected to affect approximately 3.2 million households currently enrolled in MGNREGA in Karnataka. Under the new rules, the maximum employment days per household will be reduced from 100 to 75, potentially impacting income for rural families. The wage rate, however, will remain linked to the consumer price index for agricultural laborers, as per central guidelines.
Opposition parties have criticized the decision. “This is a betrayal of the rural poor. The new law will lead to job losses and increased distress migration,” said former Chief Minister Siddaramaiah in a statement.
The state government has assured that it will work to mitigate any negative impacts by linking the rural jobs scheme with other welfare programs. The Centre has also promised additional funds for training and skill development under the new law.
