**Executive Summary**
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025 has received Presidential assent, marking a reform in India's rural employment policy. The Act replaces MGNREGA 2005, enhancing the statutory wage employment guarantee to 125 days per financial year. The Act aims to transform rural employment into an integrated instrument of development, aligned with the vision of Viksit Bharat @2047.
**Key Points / Main Content**
* **Enhanced Statutory Employment Guarantee:**
* Guarantees not less than 125 days of wage employment per rural household annually.
* Strengthens livelihood security, predictability of work, and income stability.
* **Balanced Provision for Agriculture and Rural Labour:**
* Empowers states to notify a pause period aggregating up to sixty days to ensure availability of agricultural labor.
* Ensures full 125-day employment guarantee during the remaining period.
* **Timely Wage Payments:**
* Mandates wage payment on a weekly basis or within fifteen days of work completion.
* Provides for delay compensation beyond the stipulated period.
* **Employment Linked with Productive Rural Infrastructure:**
* Aligns wage employment with the creation of durable public assets across water security, core rural infrastructure, livelihood-related infrastructure, and works to mitigate extreme weather events.
* Integrates all works into the Viksit Bharat National Rural Infrastructure Stack.
* **Decentralised Planning with National Convergence:**
* Originates works from Viksit Gram Panchayat Plans (VGPPs) approved by the Gram Sabha.
* Integrates plans digitally and spatially with national platforms for whole-of-government convergence.
* **Reformed Financial Architecture:**
* Implements the Act as a Centrally Sponsored Scheme, operationalized by State Governments.
* Cost-sharing pattern is 60:40 between the Centre and States, 90:10 for North Eastern and Himalayan States, and 100% central funding for Union Territories without legislatures.
* Provides funding through State-wise normative allocations based on objective parameters.
* **Strengthened Administrative Capacity:**
* Enhances administrative expenditure ceiling from 6% to 9%.
* **Employment Guarantee and Right to Demand:**
* Reinforces the right to demand employment.
* Government places a clear statutory obligation to provide not less than 125 days of guaranteed wage employment to eligible rural households
* **Unemployment Allowance**
* Restores unemployment allowance as a meaningful statutory safeguard.
* Where employment is not provided within the stipulated period, unemployment allowance becomes payable after fifteen days.
**Impact Analysis**
**Rural Households**
* **Impact:** Enhanced income security and more predictable employment opportunities.
* **Action Required:** Volunteer for unskilled manual work to avail of the guaranteed wage employment.
**State Governments**
* **Impact:** Required to notify and operationalize the scheme.
* **Action Required:** Notify and operationalize the scheme in accordance with the provisions of the Act.
**Panchayats**
* **Impact:** Given planning, implementation, and monitoring authority.
* **Action Required:** Lead the planning process with Gram Sabha participation to develop VGPPs.
Key Entities Referenced
Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025: A bill enhancing statutory wage employment guarantee for rural households, replacing MGNREGA, and aiming to transform rural employment.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005: The rural employment guarantee act that is being replaced by the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025.
Viksit Bharat @2047: National vision to which the bill is aligned, guiding the transformation of rural employment and development.
Gram Sabha: Village assembly involved in the planning and approval of works under the Act.
Ministry of Rural Development: The central ministry overseeing the policy and implementation of the rural employment scheme.
Ministry of Rural Development
President gives assent to Viksit Bharat—
Guarantee for Rozgar and Ajeevika Mission
(Gramin) (VB—G RAM G) Bill, 2025
The Act Enhances Statutory Employment Guarantee to 125
Days
Panchayats to lead the future –planning power to be with
Gram Sabha and Panchayats
Viksit Bharat-G RAM G aligned with the Vision of Viksit
Bharat@2047
प्रव तथ: 21 DEC 2025 4:30PM by PIB Delhi
The President of India has given assent to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission
(Gramin) (VB—G RAM G) Bill, 2025 marking a significant milestone in the transformation of rural
employment policy. The Act enhances the statutory wage employment guarantee to 125 days per
financial year for rural households and seeks to advance empowerment, inclusive growth, convergence of
development initiatives and saturation-based delivery, thereby strengthening the foundation for a
prosperous, resilient and self-reliant Rural Bharat.
Earlier, Parliament passed the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin)
Bill, 2025, marking a decisive reform in India’s rural employment and development framework. The
Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005
with a modern statutory framework that enhances livelihood security and is aligned with the
national vision of Viksit Bharat @2047.
Anchored in the principles of empowerment, growth, convergence and saturation, the Act seeks to
transform rural employment from a standalone welfare intervention into an integrated instrument of
development. It strengthens income security for rural households, modernises governance and
accountability, and links wage employment with the creation of durable and productive rural assets,
thereby laying the foundation for a prosperous and resilient Rural Bharat.
Salient Features of the Act
Enhanced Statutory Employment Guarantee
The Act provides a statutory guarantee of not less than 125 days of wage employment per rural
household in each financial year to households whose adult members volunteer to undertake
unskilled manual work (Section 5(1)).This enhancement over the earlier 100-day entitlement significantly strengthens livelihood security,
predictability of work, and income stability for rural households, while also enabling them to
contribute more effectively and meaningfully to national development.
Balanced Provision for Agriculture and Rural Labour
To facilitate adequate availability of agricultural labour during peak sowing and harvesting seasons,
the Act empowers States to notify an aggregated pause period aggregating to sixty days in a
financial year (Section 6).
The full 125-day employment guarantee remains intact, to be provided during the remaining period,
ensuring a calibrated balance that supports both agricultural productivity and worker security.
Timely Wage Payments
The Act mandates payment of wages on a weekly basis or, in any case, within fifteen days of
completion of work (Section 5(3)). In cases of delay beyond the stipulated period, delay
compensation shall be payable in accordance with the provisions laid down in Schedule II,
reinforcing wage security and protecting workers from delays.
Employment Linked with Productive Rural Infrastructure
Wage employment under the Act is explicitly aligned with the creation of durable public assets across four
priority thematic domains (Section 4(2) read with Schedule I):
1. Water security and water-related works
2. Core rural infrastructure
3. Livelihood-related infrastructure
4. Works to mitigate extreme weather events
All works are planned through a bottom-up process, and all assets created are aggregated into the Viksit
Bharat National Rural Infrastructure Stack, ensuring convergence of public investments, avoidance of
fragmentation, and outcome-based planning aimed at saturation of critical rural infrastructure, based on
varying local needs.
Decentralised Planning with National Convergence
All works originate from Viksit Gram Panchayat Plans (VGPPs), prepared at the Gram Panchayat
level through participatory processes and approved by the Gram Sabha (Sections 4(1)–4(3)).
These plans are digitally and spatially integrated with national platforms, including PM Gati Shakti,
enabling whole-of-government convergence while fully retaining decentralised decision-making.
This integrated planning framework will enable Ministries and Departments to plan and implement
works more effectively, avoid duplication and wastage of public resources, and accelerate
development through saturation-based outcomes.
Reformed Financial Architecture
The Act is implemented as a Centrally Sponsored Scheme, to be notified and operationalised by the
State Governments in accordance with the provisions of the Act.
The cost-sharing pattern is 60:40 between the Centre and States, 90:10 for North Eastern and
Himalayan States, and 100% central funding for Union Territories without legislatures.
Funding is provided through State-wise normative allocations based on objective parameters
prescribed in the Rules (Sections 4(5) and 22(4)), ensuring predictability, fiscal discipline, and
sound planning, while fully preserving statutory entitlements to employment and unemployment
allowance.
Strengthened Administrative CapacityThe administrative expenditure ceiling has been enhanced from 6% to 9%, enabling improved
staffing, training, technical capacity and field-level support, and strengthening the ability of
institutions to deliver outcomes effectively.
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 represents a decisive
step towards renewing and strengthening India’s rural employment framework in line with the vision of
Viksit Bharat @2047. By enhancing the statutory wage employment guarantee to 125 days per financial
year, the Act reinforces the right to demand employment while deepening decentralised, participatory
governance. It integrates transparent, rule-based funding, accountability mechanisms, technology-enabled
inclusion and convergence-driven development to ensure that rural employment not only provides income
security but also contributes to sustainable livelihoods, resilient assets and long-term rural prosperity.
Employment Guarantee and Right to Demand
The Act does not dilute the right to demand employment. On the contrary, Section 5(1) places a clear
statutory obligation on the Government to provide not less than 125 days of guaranteed wage employment
to eligible rural households. The expansion of guaranteed days, together with strengthened accountability
and grievance redressal mechanisms, reinforces the enforceability of this right.
Normative Funding and Employment Provision
The shift to normative allocations pertains to budgeting and fund-flow mechanisms and does not affect the
legal entitlement to employment. Sections 4(5) and 22(4) ensure rule-based, predictable allocations while
retaining the statutory obligation to provide employment or unemployment allowance.
Decentralisation and Role of Panchayats
The Act does not centralise planning or execution. Sections 16 to 19 vest planning, implementation and
monitoring authority in Panchayats, Programme Officers and District authorities at appropriate tiers. What
is integrated at the national level is visibility, coordination and convergence, not local decision-making.
Employment and Asset Creation
The Act enshrines an enhanced statutory livelihood guarantee of 125 days, while ensuring that
employment contributes to productive, durable and climate-resilient assets. Employment generation and
asset creation are designed as mutually reinforcing objectives, supporting long-term rural growth and
resilience (Section 4(2) and Schedule I).
Technology and Inclusion
Technology under the Act is intended as an enabling mechanism, not a barrier. Sections 23 and 24 provide
for technology-enabled transparency through biometric authentication, geo-tagging and real-time
dashboards, while Section 20 strengthens social audits by Gram Sabhas, ensuring community oversight,
transparency and inclusion.
Unemployment Allowance
The Act removes earlier dis-entitlement provisions and restores unemployment allowance as a meaningful
statutory safeguard. Where employment is not provided within the stipulated period, unemployment
allowance becomes payable after fifteen days.
Conclusion
The passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025
represents a significant renewal of India’s rural employment guarantee. By expanding statutory
employment to 125 days, embedding decentralised and participatory planning, strengtheningaccountability, and institutionalising convergence and saturation-based development, the Act repositions
rural employment as a strategic instrument for empowerment, inclusive growth and the creation of a
prosperous and resilient Rural Bharat, fully aligned with the vision of Viksit Bharat @2047.
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