**Executive Summary**
The Central Government has notified the ‘Viksit Bharat - Guarantee for Employment and Livelihood Mission (Rural)’ (VB–G RAM G Act), effective from July 1, 2026. This legislation increases guaranteed rural employment to 125 days per year and allocates over ₹1.51 lakh crore for rural infrastructure and wages. States must complete preparations within six months, while MGNREGA provisions remain in force during the transition period.
**Key Points / Main Content**
**Employment and Compensation**
* Increases the annual employment guarantee for rural labourers from 100 days to 125 days.
* Mandates the payment of an unemployment allowance if work is not provided upon request.
* Ensures wage payments via Direct Benefit Transfer (DBT) within a target of three days and a maximum of 15 days.
* Provides for mandatory compensation to workers in the event of delayed wage disbursements beyond 15 days.
**Financial and Administrative Provisions**
* Allocates a total budget exceeding ₹1.51 lakh crore, with the Central Government contributing ₹95,000 crore.
* Increases administrative expenditure allocation from 6% to 9% to ensure timely wage processing and mission management.
* Establishes that works undertaken after July 1, 2026, will be governed by the VB–G RAM G funding pattern, even if states have not finalized all preparations.
**Infrastructure and Development Scope**
* Prioritizes essential works including water conservation, roads, bridges, schools, and Anganwadi buildings.
* Supports livelihood-generating infrastructure, such as working sheds for women’s Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs).
* Includes disaster mitigation projects, such as the construction of retaining walls in waterlogged or riverside areas.
**Impact Analysis**
**Rural Labourers and Families**
**Impact**
They receive enhanced income security through 25 additional days of guaranteed work and financial protection via unemployment allowances and delay compensation.
**Action Required**
Labourers seeking employment must apply under the new Act starting July 1, 2026, and ensure bank or post office accounts are linked for DBT.
**State Governments**
**Impact**
States are responsible for co-funding the mission and must align their administrative and budgetary frameworks with the new Act.
**Action Required**
Must complete necessary preparations and rule formulation within a maximum of six months and provide for implementation in their respective budgets.
**Women and Self-Help Groups (SHGs)**
**Impact**
These groups gain dedicated infrastructure, such as working sheds, to support their livelihood-generating activities.
**Action Required**
Engage with local authorities to identify and facilitate the construction of infrastructure facilities relevant to their operations.
**Farmer Producer Organizations (FPOs)**
**Impact**
FPOs benefit from large-scale sustainable development initiatives and the construction of specialized infrastructure to support agricultural livelihoods.
**Action Required**
Identify specific infrastructure needs and coordinate with rural development agencies to utilize the mission's resources.
Key Entities Referenced
Viksit Bharat - Guarantee for Employment and Livelihood Mission (Rural): Also known as the VB–G RAM G Act, this new legislation guarantees 125 days of rural employment per year, increasing from the previous 100-day provision.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): The existing rural employment framework whose provisions remain in force during the transition period until the new Act takes effect on July 1, 2026.
Ministry of Rural Development: The primary Union Ministry responsible for the notification, formulation of rules, and national implementation of the VB–G RAM G Act.
Shri Shivraj Singh Chouhan: The Union Minister for Rural Development who announced the notification of the new law and the combined budget allocation of over ₹1.51 lakh crore.
Ministry of Rural Development
A new Dawn in the lives of workers - Shri Shivraj
Singh Chouhan
The new rural employment law will empower all three:
workers, farmers, and villages – Shri Shivraj Singh Chouhan
A major stride towards a developed India: Notification issued
for the VB-GRAM G Act - Union Minister Shri Shivraj Singh
Chouhan
Under the leadership of Prime Minister Shri Narendra Modi, a
new era of employment begins in rural India starting July 1st;
now a guarantee of 125 days, not just 100 – Shri Shivraj Singh
Rs 1.51 lakh crore to transform the face of villages: A massive
campaign spanning everything from employment to
infrastructure – Shri Shivraj Singh Chouhan
Timely wage payments, compensation for delays, and an
unemployment allowance if work is not provided - Union
Minister Shri Shivraj Singh
Posted On: 11 MAY 2026 3:00PM by PIB Delhi
Marking a major milestone in the history of India's rural development, the Central Government today-May
11, 2026-issued a notification for the implementation of the ‘Viksit Bharat - Guarantee for Employment
and Livelihood Mission (Rural)’, also known as the VB–G RAM G Act. This Act is set to come into force
across the entire country starting July 1, 2026. Union Minister Shri Shivraj Singh Chouhan stated that this
legislation will pave the way for renewed hope, enhanced income security, and large-scale sustainable
development initiatives in villages for the rural poor, labourers families, women, self-help groups, and
farmers.
Speaking to the media in Bhopal today, Union Minister Shri Shivraj Singh Chouhan announced that the
notification for the “Viksit Bharat G-RAM G Act’ has been issued. He further informed that, effective July
1, labourers in rural areas seeking employment will now be provided with 125 days of work per year-an
increase from the previous provision of 100 days. He added that during this interim period, all provisions
of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will remain in force,
and any pending works will be completed under the MGNREGA framework prior to July 1. He also noted
that the process of formulating the rules for the new Act is currently underway, following extensiveconsultations with the states. However, the government remains committed to ensure that no labourer is
deprived of employment during this transition phase. Comprehensive arrangements have already been put
in place to guarantee this.
Shri Shivraj Singh Chouhan stated that, under the 'Viksit Bharat G-Ram G' initiative, most states will have
a maximum of six months to complete the necessary preparations. He clarified that if any state fails to
complete the requisite preparations by July 1St, the funding pattern for works undertaken after July 1st will
be governed by the 'Viksit Bharat G-Ram G' scheme.
Shri Shivraj Singh noted that, under the leadership of Prime Minister Shri Narendra Modi, the
Government of India has allocated over ₹95,000 crore in its budget to generate employment through this
scheme. He added that the states have also made provisions in their respective budgets for its
implementation, and the combined allocation from both the Centre and the states will exceed ₹1,51,000
crore.
Union Minister Shri Shivraj Singh stated that payments to labourers will be made via Direct Benefit
Transfer (DBT) into their bank or post office accounts. While the aim will be to process payments within
three days, the objective is to ensure that all procedures are completed and the funds reach their accounts
within a maximum of 15 days. He further stated that if the funds are not received within 15 days, labourers
will be entitled to delayed payment compensation, and an additional amount will have to be paid in cases
of delayed disbursement.
Shri Shivraj Singh stated that if employment is not provided upon request, an unemployment allowance
must also be paid. Describing this as a comprehensive scheme designed for the welfare of labourers, he
noted that infrastructure development works in villages would be undertaken on a massive scale, backed
by an annual allocation exceeding ₹151,000 crore.
He further stated that this initiative would facilitate essential works such as water conservation, rural
infrastructure development, roads, bridges, culverts, schools, and Anganwadi buildings. Under the ambit
of livelihood-generating activities, infrastructure facilities-such as working sheds for women members of
Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs)-could also be constructed.
Furthermore, to mitigate the impact of natural disasters, works such as the construction of retaining walls
in riverside villages or waterlogged areas could also be undertaken as part of this scheme. He added that to
ensure adequate and timely wage payments to the workers engaged under this scheme, the administrative
expenditure allocation has been increased from 6 percent to 9 percent.
Union Minister Shri Chouhan expressed confidence that this marks the dawn of a new era in the lives of
laborers, and that this scheme will prove to be a milestone in fulfilling the resolve to build "developed
villages" as a foundation for a "Developed India."***
RC/PU/SKJ
(Release ID: 2259773) Visitor Counter : 419
Read this release in: Urdu , Marathi , ही , Punjabi , Gujarati , Tamil , Telugu , Kannada , Malayalam