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PIB Backgrounder
Viksit Bharat – Guarantee for Rozgar and
Ajeevika Mission (Gramin), 2025:
वकसत भारत जी राम जी
VB-G RAM G ( - ) Act, 2025
Posted On: 11 MAY 2026 11:42AM by PIB Delhi
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 seeks to transform
the rural employment framework by aligning wage employment with sustainable development and the
vision of Viksit Bharat @2047. The Act enhances the statutory employment guarantee from 100 to
125 days in every financial year for all rural households. The framework prioritizes water security,
rural infrastructure, livelihood assets, and disaster preparedness through outcome-oriented works and
digitally integrated planning. Technology-enabled governance through biometric authentication, geo-
referencing, digital monitoring, and time-bound wage payments aims to strengthen transparency and
accountability. Mandatory social audits, structured oversight mechanisms, and grievance redressal
systems further reinforce implementation. The Act positions rural employment as a productive driver of
sustainable village development and durable asset creation.
Historic Operationalisation of the VB–G RAM G Act Across All Rural Areas of the Country
The Government of India has notified the commencement of the Viksit Bharat – Guarantee for Rozgar and
Ajeevika Mission (Gramin): VB–G RAM G (वकसत भारत—जी राम जी) Act, 2025 across all rural areas of
the country with effect from 01/07/2026. With the coming into force of the VB – G RAM G Act, the
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, stands repealed from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.
The Commencement of the Act marks a historic transition from the earlier framework of Mahatma Gandhi
NREGA towards a modern rural development architecture that combines livelihood security, durable asset
creation, technology-enabled governance, convergence-driven planning, and climate resilience.
The Act establishes a statutory guarantee of 125 days of wage employment in every financial year to every
rural household whose adult members volunteer to undertake unskilled manual work. This enhanced
guarantee is expected to provide renewed momentum to rural household incomes, livelihood security,
village-level infrastructure creation, and sustainable rural development. Simultaneously, it seeks to create
durable and productive rural infrastructure that strengthens water security, rural infrastructure, rural
livelihoods, local economic growth, and resilience against climate-related challenges.
Background and Need for ReformFor several decades, wage-employment programmes have formed an integral component of India’s rural
development strategy, providing income support to rural households facing under-employment and
livelihood insecurity.
Over time, the rural economy has undergone significant transformation due to expanded social protection,
improved physical and digital connectivity, enhanced financial inclusion, and diversification of
livelihoods. These developments necessitate a recalibration of the existing rural employment framework to
align with contemporary needs and aspirations, as well as with the national vision of Viksit Bharat
@2047.
In furtherance of this objective, it is proposed to strengthen the livelihood guarantee framework by
enhancing the statutory employment guarantee from one hundred days to one hundred and twenty-five
days in a financial year. The enhanced guarantee is intended to support the accelerated pace of rural
development, provide greater income security, and empower rural households through expanded
employment opportunities.
Accordingly, it has been enacted a new legislation titled the Viksit Bharat - Guarantee for Rozgar and
Ajeevika Mission (Gramin): VB- G RAM G Act, 2025, to establish a future-ready rural development
framework that integrates livelihood security with productivity, convergence, resilience, and sustainable
asset creation, in alignment with the Viksit Bharat @2047 vision.
The VB-G RAM G Act, 2025 is a comprehensive legislative reset designed to align rural employment
with the national vision of Viksit Bharat @2047. Passed by Parliament in December 2025, the Act
replaces the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA),
2005. It shifts the focus from a standalone welfare intervention to an integrated instrument of development
and resilient infrastructure.
Enhanced Livelihood Guarantee and Worker-Centric Framework
A central feature of the Act is the enhancement of the statutory employment guarantee from 100 days to
125 days in every financial year for all rural households. The enhanced guarantee is intended to strengthen
livelihood security, improve income stability, support rural consumption and provide greater economic
resilience to vulnerable households.
The framework has been designed around the principle of “Rozgar Bhi, Samman Bhi”- employment with
dignity. The objective is not merely to provide wage employment, but to ensure that rural workers become
active participants in the creation of durable and productive public assets that contribute to long-term
village development.The transition from Mahatma Gandhi NREGA to the new framework has also been designed in a seamless
and worker-friendly manner. Existing e-KYC-verified Job Cards shall continue to remain valid until
Gramin Rozgar Guarantee Cards are issued. Workers who do not currently possess Job Cards may apply at
the Gram Panchayat level for registration and issuance of new cards. Workers shall not be denied
employment merely due to pending e-KYC, and facilitation mechanisms have been provided for
completion of e-KYC, including at worksites, wherever necessary.
Workers may continue to demand employment orally, in writing through the existing Form-6 framework,
or through digital platforms. Employment shall continue to be provided within the prescribed timeframe,
failing which workers shall remain entitled to unemployment allowance as per the provisions of the Act.
The unemployment allowance shall be payable at not less than one-fourth of the notified wage rate for the
first thirty days of the financial year and at not less than one-half of the notified wage rate for the
remaining period of the financial year, thereby strengthening the legal guarantee of employment and the
accountability of the implementation framework.Timely Wage Payments and Strengthened Transparency
The Act places strong emphasis on timely, transparent, and accountable wage payments. Wages shall
continue to be transferred directly into workers’ bank or post office accounts through Direct Benefit
Transfer (DBT), thereby strengthening transparency and reducing delays.
Under the framework, wages are to be paid weekly or, in any case, within fifteen days from the closure of
the muster roll. In cases where wages are delayed beyond the stipulated period, workers shall be entitled to
delay compensation in accordance with the provisions of the Act. The Act further provides that where
payment of wages is not made within fifteen days from the date of closure of the muster roll, wage seekers
shall be entitled to receive compensation for the delay at the rate of 0.05 percent of the unpaid wages for
every day of delay beyond the sixteenth day after closure of the muster roll. These provisions are intended
to strengthen accountability in wage disbursement and ensure timely payment to workers.
Attendance at worksites shall be captured through NMMS-enabled systems and face authentication-based
attendance mechanisms. At the same time, suitable exception handling provisions have also been
incorporated to ensure that genuine workers are not adversely affected due to technical or connectivity-
related issues.
A Seamless Transition: "Rozgar Bhi, Samman Bhi"
The government’s primary intention is a smooth transition that protects the interests of the rural workforce
under the Act.Notification for All Rural Areas: The provisions of this Act come into effect simultaneously in all
rural areas across the country from the date of commencement. Simultaneously, Mahatma Gandhi
NREGA will stand repealed with effect from the same date i.e. 01/07/2026.
Employment under Mahatma Gandhi NREGA will continue in a seamless and smooth manner till
commencement of the VB- G RAM G Act.
The Government’s highest priority remains ensuring timely availability of employment and prompt
payment of wages to workers. In order to ensure uninterrupted employment opportunities, adequate labour
budget has been made available to States and Union Territories in alignment with emerging demand
patterns and field requirements.
Worker Continuity: Existing Job Cards for workers with completed e-KYC remain valid during
the transition until new Gramin Rozgar Guarantee Cards are issued.
Ongoing Works: Ongoing works under MGNREGA as on the date of commencement may
continue under the new Act.
New Works: Where ongoing works are insufficient to meet employment demand, new works
consistent with Schedule I of the new Act may be taken up.
Historic Budgetary Commitment
The Government of India has made extensive financial provisions for operationalisation of the new
framework across the country. For FY 2026–27, a provision of ₹95,692.31 crore has been made as Central
share under the programme. This is the largest allocation for a rural employment programme at the Budget
Estimate stage to date. This provision clearly reflects the priority, scale and commitment of the
Government, through which employment and livelihood opportunities in rural areas are expected to gain
new momentum.
Including the estimated State share, the total programme outlay is expected to exceed ₹1.51 lakh crore.
The massive financing reflects the Government’s credible commitment of driving large-scale
transformation in the rural economy, promoting employment generation, creating durable village-level
assets and ensuring significant growth in the income of rural households.Field Functionaries: Capacity, Accountability, and Efficiency
The role of field-level functionaries, such as POs, Mates, and Gram Rozgar Sevaks (GRS) and others, is
pivotal in the smooth transition to VB-G RAM G. Under this Act, administrative expenditure has been
increased from 6 percent to 9 percent, which will promote capacity building, training, strengthening of
human resources, payment of remuneration, and improved implementation at the field level. This
systematic reform will ensure that personnel working at the grassroots become more efficient and
empowered.
Expanded Scope of Work: New Momentum to Development
Under the Viksit Bharat–G RAM G Act, 2025, the scope of works has been significantly expanded and
aligned with the goal of Viksit Bharat@2047. Works are structured into four major thematic areas: water
security, core rural infrastructure, livelihood-related infrastructure, and works to mitigate extreme weather
events. This enables a more outcome-oriented and cohesive approach in implementation.
Permissible works under the Act are not limited to traditional labour-based activities but also include
multi-dimensional works that directly enhance the quality of rural life, while also creating durable assets
that generate further livelihood opportunities. This approach is based on the principle of “employment as
well as dignity”, in which workers are active participants in the development process.
Thematic prioritisation of works has been introduced to ensure that each day of employment contributes
towards creation of durable and productive rural infrastructure.
Water security works shall include irrigation support, groundwater recharge structures, watershed
development, rejuvenation of water bodies, afforestation and rainwater harvesting structures aimed at
strengthening long-term water resilience across rural regions.Core rural infrastructure works shall include rural roads, public buildings, school infrastructure,
Anganwadi centres, sanitation systems, renewable energy infrastructure, housing-related works and works
under various Government schemes, thereby improving access to basic amenities and public services.
Livelihood-related infrastructure shall include rural markets, storage infrastructure, food processing units,
cold storage facilities, livestock infrastructure, fisheries infrastructure, compost units and skill
development centres. These interventions are expected to strengthen local livelihoods, diversify rural
incomes and support agro-based economic activities.
The framework also prioritises works related to mitigation of extreme weather events and climate
resilience, including flood management structures, embankments, cyclone shelters, post-disaster
restoration and forest fire management works.
Through this thematic approach, rural employment is directly linked with productive asset creation, local
economic development, and resilience-building.
These works will ensure employment generation, value addition, expansion of agro-based industries and
improved service availability, thereby bringing stability to the rural economy and diversifying income
sources.
Balance During Agricultural Season: Protection of Interests of Both Farmers and Workers
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.
Viksit Gram Panchayat Plan (Planning Framework)
In line with the vision of Viksit Bharat @2047, rural India is entering a new and transformative phase. The
direction of development is no longer limited to wage employment, but is evolving towards an integrated
model of “employment, livelihood and the creation of productive assets.” The Viksit Bharat–G RAM G
Scheme reflects this comprehensive and decentralized approach, placing Gram Panchayats at the centre of
development and empowering them with real authority in planning and implementation. Through the
preparation of Viksit Gram Panchayat Plans, Gram Panchayats will themselves decide the direction of
their development.
Under this framework, the planning process has been structured as a bottom-up approach, wherein Gram
Panchayats identify and prioritise works based on local needs through Gram Sabhas, with consolidation at
the Block, District and State levels. This system is integrated with PM Gati Shakti, GIS and digital
platforms, ensuring scientific and spatial planning.
Worksite Facilities: Emphasis on Dignity and Safety of Workers
Under Schedule II of the Viksit Bharat- G RAM G Act, 2025, worksite facilities have been given a legal
guarantee, which elevates it beyond an administrative arrangement and makes it a strong symbol of
dignity of labour and human respect. Under this provision, the availability of clean drinking water at every
worksite has been made mandatory. Particularly keeping in mind the summer conditions in rural India,
adequate arrangements for shade and rest areas have been ensured to protect workers from heat.
Additionally, the availability of a first-aid kit at every worksite has also been ensured, so that the safety
and health of workers are prioritised.To promote the participation of women workers, a key provision has been incorporated in the Act. At
worksites where five or more children below the age of five are present, a woman worker will be
appointed to take care of the children and will be paid at the prescribed wage rate. This arrangement not
only ensures continuity of work for women but also makes the worksite more inclusive and responsive to
their needs.
In addition, to ensure the safety of workers, the right to free medical treatment in case of accidents has
been provided. If hospitalisation is required, provisions will be made for accommodation, treatment,
medicines and a daily allowance equal to half the wage rate. In cases of death or permanent disability, ex-
gratia assistance will be payable as per the provisions of the Pradhan Mantri Suraksha Bima Yojana. Thus,
the Act ensures a comprehensive framework of safety, sensitivity and social security at the worksite.
Transparency and accountability at worksites shall also be strengthened through mandatory Janata Boards
displaying details relating to sanctioned works, labour estimates, expenditure and material utilisation. The
framework further provides for weekly public disclosure systems, geo-tagging of assets, real-time
dashboards, mobile-based monitoring and strengthened social audits to ensure transparency, community
participation and effective public oversight at the grassroots level
Special Exemptions in Implementation
In the event of natural disasters or other extraordinary circumstances, the Central Government will be
empowered to grant special exemptions as required. This will ensure that relief and rehabilitation activities
in affected areas can be carried out swiftly and without interruption, and that affected communities receive
timely assistance.
Salient Features of the VB- G RAM G Act
Alignment of Rural Development Framework with Viksit Bharat 2047:
The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin): VB–G RAM G (वकसत
भारत– (Act,2025 is crafted to align the rural development framework with the national vision of
जी राम जी
Viksit Bharat @ 2047, so that wage employment, asset creation, and public investment together build amore prosperous, resilient and inclusive rural Bharat. Rural works are positioned as a central instrument to
deliver better infrastructure, stronger livelihoods and greater climate resilience in villages, ensuring that
Viksit Bharat is realised through Viksit Panchayat.
Convergence and Saturation based Approach
To translate this vision into practice, the Act adopts a convergence and saturation-based approach that
brings together complementary Government schemes within a single, coherent rural development
architecture. Funds, departments and programmes are expected to work in harmony at the Gram
Panchayat level, with planning aimed at covering all eligible households and systematically closing
critical gaps, rather than supporting scattered or one-off works.
Thematic, Asset Focused Public Works
On this foundation, the Act uses a structured thematic prioritisation of public works so that each day of
guaranteed employment creates productive and durable rural assets. All works identified through the
Viksit Gram Panchayat Plans (VGPPs) are integrated into the Viksit Bharat–National Rural Infrastructure
Stack (VB-NRIS), creating a unified and forward-looking rural infrastructure framework fully aligned
with the Viksit Bharat vision.
Four Priority Thematic Areas
Water security: Water related works such as conservation structures, irrigation support, groundwater
recharge, rejuvenation of water bodies, watershed development and afforestation will strengthen water
security across rural regions.
Core rural infrastructure: Essential civic, social and service- delivery assets—rural roads, public
buildings, school infrastructure, sanitation systems, renewable energy facilities and housing work under
Central Government schemes—will ensure better basic amenities and improved access to services.
Livelihood related infrastructure: Productive assets for agriculture, livestock, fisheries, storage,
markets, skill development, and circular economy models will support sustainable livelihoods, value
addition, and diversified rural income opportunities.
Special works for extreme weather events: Disaster preparedness and climate adaptation works—such
as shelters, embankments, flood management structures, rehabilitation works, and forest fire management
—will help create climate-resilient villages.Through this thematic focus, the Act ensures that public works simultaneously advance water security,
strengthen core rural systems, expand livelihood opportunities and build resilience, thereby supporting
empowerment, growth, convergence and saturation in line with the national vision of Viksit Bharat 2047.
Modern, Technology enabled Governance
The Act establishes a modern, transparent and technology enabled governance architecture to ensure
effective implementation, accountability and high integrity service delivery. In a rural India marked by
deeper digital penetration, improved connectivity and expanded public infrastructure, governance systems
will be strengthened through digital public infrastructure, real time monitoring and enhanced transparency
mechanisms.
The framework provides for biometric authentication, mobile based monitoring, spatial technology
enabled planning, real time dashboards, AI enabled analytics and citizen engagement platforms. These
systems ensure accurate verification of workers, functionaries and transactions, improve oversight and
support timely reporting and corrective action across all stages of implementation.A strengthened Social Audit mechanism forms a core part of this architecture, enhancing community
participation and reinforcing transparency and accountability at the village level. In addition, a National
Level Steering Committee and State Level Steering Committees will review, monitor, and evaluate
implementation in their respective areas, ensuring coordinated oversight and a whole of government
approach.
By embedding this modern, technology-enabled governance ecosystem, the Act enables predictable
service delivery, reduces duplication, improves the quality of assets, and supports empowerment, growth,
convergence, and saturation. This governance architecture ensures that rural Bharat is equipped with the
systems necessary to advance towards the national vision of Viksit Bharat @ 2047.
Key Statutory Provisions
a) Enhanced livelihood guarantee
The principal objective is to align rural development with Viksit Bharat @ 2047 by strengthening the
livelihood guarantee framework through 125 days of wage employment per financial year for rural
households whose adult members volunteer for unskilled manual work.
b) Integration into VB- NRIS
All works will be aggregated into the Viksit Bharat National Rural Infrastructure Stack, with priority to
water security through water-related works, core rural infrastructure, livelihood related infrastructure, and
special works to mitigate extreme weather events.
c) VGPP based planning
Planning will be undertaken through Viksit Gram Panchayat Plans, prepared by Gram Panchayats and
integrated with national spatial planning systems, including PM Gati Shakti, while factoring in varying
local developmental needs.
d) Securing peak agricultural seasonsStates will be empowered to notify in advance, a period aggregating to 60 days in a financial year
covering peak sowing and harvesting during which works under the Act will not be undertaken,
facilitating sufficient farm labour at critical times.
e) Centrally Sponsored Scheme
The scheme will be implemented as a Centrally Sponsored Scheme with shared responsibilities between
the Centre and States.
f) Normative Allocation
To promote inclusive growth and equitable distribution of financial resources in a fair manner, the Central
Government will make Normative Allocation to each State based on objective parameters prescribed in
the Rules; expenditure beyond this will be the responsibility of the State. States will ensure transparent
and need-based intra-state distribution of funds across districts and gram panchayats, taking into account
the category of the panchayats and local developmental needs, thereby strengthening equity, transparency
and accountability.
g) Special relaxations
During natural calamities or extraordinary circumstances, the Central Government may make temporary
relaxations for timely response and relief.
h) Transparency and accountability
Biometric authentication, spatial technology enabled planning, mobile and dashboard-based monitoring,
weekly public disclosure systems and a strengthened Social Audit mechanism will ensure transparency
and accountability.
i) Institutional Oversight
The Central Gramin Rozgar Guarantee Council and the State Gramin Rozgar Guarantee Councils shall be
constituted for review, monitoring and effective implementation of the provisions of the legislation in their
respective areas. Steering committees at Central and State Level shall be constituted to recommend on
matters concerning normative allocations, convergence and other such matters.
j) Wage rate specification
Wage rates for unskilled manual work will be notified by the Central Government;
k) State schemes within six months
Every State Government must notify its Scheme, as per the provisions of the Act, within six months of the
Act’s commencement.
l) Unemployment allowance
If eligible applicants are not provided work within the stipulated period, such workers will be paid
unemployment allowance as per the provisions in the Act.
m) Minimum legal guarantees for labour
The Act lays down minimum features and conditions to protect labourers’ legal guarantees and rights
under the Scheme.
Reference
Ministry of Rural Development
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