In a major overhaul of India’s rural employment framework, the Centre on Sunday notified the implementation of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB–G RAM G] Act, 2025, which will come into force across the country from July 1, 2026.
With the new legislation taking effect, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 will stand repealed from the same date, marking a significant transition in the country’s rural development model.
The government said the new framework is aimed at ushering in a more integrated, productivity-oriented and future-ready system of rural transformation aligned with the vision of Viksit Bharat @2047.
Under the VB–G RAM G Act, every rural household whose adult members volunteer to undertake unskilled manual work will be entitled to a statutory guarantee of 125 days of wage employment in a financial year, an increase from the existing 100 days under MGNREGA.
The Centre said the enhanced employment guarantee is intended to strengthen livelihood security, improve rural incomes and accelerate sustainable development at the village level.
The government has allocated ₹95,692.31 crore for the implementation of the scheme in the financial year 2026–27, the highest-ever Budget Estimate allocation for a rural employment programme. Including contributions from states, the total programme outlay is expected to exceed ₹1.51 lakh crore.
According to the notification, wage payments will continue through Direct Benefit Transfer (DBT) into workers’ bank or post office accounts. Wages are to be paid weekly or within 15 days of the closure of the muster roll, failing which workers will be entitled to delay compensation as per the provisions of the Act.
The government also assured a seamless transition from MGNREGA to the new framework. Existing MGNREGA works will continue without interruption till June 30 and ongoing projects will be carried forward under the new Act.
Existing e-KYC verified MGNREGA job cards will remain valid until new Gramin Rozgar Guarantee Cards are issued. Workers without job cards will continue to be allowed to register at the Gram Panchayat level, while pending e-KYC verification will not prevent eligible workers from receiving employment.
The Ministry of Rural Development is currently preparing draft rules for the implementation of the Act in consultation with states and Union Territories. These include rules related to wage payments, grievance redressal, administrative expenditure, unemployment allowance, transitional provisions and allocation norms.
The Centre said the Viksit Bharat–G RAM G Act, 2025 is expected to provide fresh momentum to employment generation, rural infrastructure development and self-reliance in villages, with Gram Panchayats positioned at the centre of the transformation process.
