**Executive Summary**
The Government of India notified the implementation of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB–G RAM G] Act, 2025, which will be rolled out nationwide on 1 July 2026. This Act repeals the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, and increases the statutory employment guarantee to 125 days per financial year. A historic central budget of ₹95,692.31 crore has been allocated for 2026–27 to ensure a seamless transition and enhanced livelihood security.
**Key Points / Main Content**
**Employment and Wage Provisions**
* **Statutory Guarantee:** Every rural household is entitled to 125 days of unskilled manual wage employment per financial year.
* **Demand-Based Work:** Employment must be provided within a prescribed timeframe upon demand, or workers will receive an unemployment allowance.
* **Timely Payments:** Wages are to be paid weekly or within 15 days of muster roll closure via Direct Benefit Transfer (DBT); delays entitle workers to compensation.
**Transition Framework**
* **Repeal of MGNREGA:** The 2005 Act will be repealed on 1 July 2026 as the VB–G RAM G Act comes into force.
* **Continuity of Works:** Ongoing MGNREGA projects as of 30 June 2026 will be carried over into the new framework without interruption.
* **Job Card Validity:** Existing e-KYC verified MGNREGA Job Cards remain valid until new Gramin Rozgar Guarantee Cards are issued.
**Financial and Administrative Structure**
* **Budgetary Allocation:** The Central Government has allocated ₹95,692.31 crore, with the total programme outlay (including State contributions) estimated to exceed ₹1.51 lakh crore.
* **Governance Pillar:** Gram Panchayats are designated as the central pillar for rural transformation and implementation.
* **Rule Formulation:** The Ministry of Rural Development is drafting rules covering grievance redressal, wage payment manners, steering committees, and administrative expenditure.
**Impact Analysis**
**Rural Households and Workers**
**Impact**
Workers benefit from an increased guarantee of 125 days of work and a transparent, DBT-based weekly payment system.
**Action Required**
Workers without cards should register at the Gram Panchayat level; existing cardholders must ensure e-KYC completion as facilitated by local authorities.
**State and Union Territory Governments**
**Impact**
States must co-fund the program (bringing total outlay to ₹1.51 lakh crore) and manage the transition of field-level operations.
**Action Required**
Provide consultation on draft rules, facilitate e-KYC completion for workers, and ensure no interruption in work or wages during the transition period.
**Gram Panchayats**
**Impact**
They serve as the primary implementation hub for the Act, gaining a central role in village-level development and employment management.
**Action Required**
Manage worker registrations for those without job cards and oversee the execution of ongoing and new productivity-oriented rural works.
**Ministry of Rural Development (Central Government)**
**Impact**
Responsible for the highest-ever budgetary allocation for a rural employment scheme and the legislative transition.
**Action Required**
Finalize and publish the Transitional Provisions Rules and other draft rules for public consultation; ensure the timely release of the labour budget to States.
Key Entities Referenced
Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB–G RAM G] Act, 2025: A new statutory framework notified to replace MGNREGA, providing a guarantee of 125 days of wage employment per financial year to rural households.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005: The existing rural employment legislation slated for repeal to facilitate a transition to the new integrated VB–G RAM G framework.
Ministry of Rural Development: The primary central ministry responsible for notifying the implementation of the new Act and drafting its operational rules and guidelines.
Ministry of Rural Development
Historic Commencement of Viksit Bharat – G
RAM G Act Across Rural India from July 1st 2026
125 Days of Statutory Employment Guarantee to Strengthen
Rural Livelihoods
Seamless Transition from MGNREGA to Viksit Bharat G RAM
G to be ensured
₹95,692 Crore Historic Allocation to Accelerate Employment,
Livelihoods and Rural Transformation
Existing job cards to remain valid, ongoing works to continue
without interruption.
Posted On: 11 MAY 2026 12:09PM by PIB Delhi
Marking a major milestone in India’s rural development journey, the Government of India on 11 May
2026 notified the implementation of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission
(Gramin) [VB–G RAM G] Act, 2025, to be rolled out nationwide from 1 July 2026.
With the coming into force of the VB–G RAM G Act, the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA), 2005 shall stand repealed from the same date. This marks a historic
transition in India’s rural development framework and ushers in a new era of integrated, future-ready and
productivity-oriented rural transformation aligned with the national vision of Viksit Bharat @2047.
Under the new framework, every rural household whose adult members volunteer to undertake unskilled
manual work shall be entitled to a statutory guarantee of 125 days of wage employment in every financial
year. The enhanced guarantee is intended to strengthen livelihood security, improve rural incomes and
support sustainable village-level development.
Click here to view the Gazette Notification for the Commencement of the VB–G RAM G Act.
Employment shall be provided to workers against their demand for work within the prescribed timeframe,
failing which workers shall remain entitled to unemployment allowance in accordance with the provisions
of the Act.
The Act places strong emphasis on timely and transparent wage payments. Wages shall continue to be
transferred directly into workers’ bank or post office accounts through Direct Benefit Transfer (DBT).
Wages are to be paid on a weekly basis or within fifteen days from the closure of the muster roll, failing
which workers shall be entitled to delay compensation in accordance with the provisions of the Act.The Government of India has ensured comprehensive financial provisions for effective implementation of
the Viksit Bharat – G RAM G Act, 2025. For the financial year 2026–27, the Central Government has
made a budgetary allocation of ₹95,692.31 crore, which is the highest-ever allocation at the Budget
Estimate stage for a rural employment programme.
Including the likely contribution of the States, the total programme outlay is estimated to exceed ₹1.51
lakh crore. This allocation is expected to provide fresh momentum to rural infrastructure development,
large-scale employment generation and enhancement of rural incomes.
In order to ensure seamless, smooth and worker-centric transition, employment under MGNREGA shall
continue uninterrupted till the date of commencement of the new Act. Ongoing works under MGNREGA
as on June 30th shall be saved and carried over in the new framework seamlessly by ensuring consistency
with the provisions of Viksit Bharat G RAM G. Timely availability of work and prompt payment of wages
to rural workers remain the priority of the Government.
The Government has made adequate labour budget provisions available to States and Union Territories in
alignment with demand patterns and field requirements so that no eligible rural household faces
inconvenience during the period prior to the commencement of the VB–G RAM G Act.
The existing e-KYC verified MGNREGA Job Cards shall remain valid under VB–G RAM G until Gramin
Rozgar Guarantee Cards are issued. Workers without Job Cards may continue to register at the Gram
Panchayat level. Workers shall not be denied employment merely due to pending e-KYC, and facilitation
arrangements for e-KYC completion shall continue at the field level by the State Governments.
Various draft rules under the VB–G RAM G Act, 2025 are being prepared by the Ministry of Rural
Development in consultation with the States and Union Territories.
Rules on Objective Parameters for Normative Allocation
Transitional Provisions Rules
National Level Steering Committee Rules
Central Gramin Rozgar Guarantee Council Rules
Administrative Expenditure Rules
Grievance Redressal Rules
Rules on the Manner of Payment of Wages and Unemployment Allowance
Rules on manner and procedure to bear excess expenditure
Rules regarding manner to bear the expenses of Scheme for Union Territories without legislature.
To ensure a smooth transition from Mahatma Gandhi NREGA to VB–G RAM G, appropriate provisions
are being incorporated in the Transitional Provisions Rules, which are expected to be published shortly.
Various other rules, as listed above, have also been drafted and will be published soon for public
consultation.
The Viksit Bharat – G RAM G Act, 2025 is expected to provide new momentum to employment
generation, rural development and self-reliance in villages. By positioning Gram Panchayats as the central
pillar of rural transformation, the Act is poised to become a significant milestone in building an
empowered, prosperous and developed rural Bharat.
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