New Delhi: The Government of India on Monday announced that the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB–G RAM G] Act, 2025, will come into force across the country from July 1, 2026, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.
The new legislation guarantees 125 days of wage employment annually to every rural household whose adult members volunteer for unskilled manual work, marking a major shift in the country’s rural employment and development framework.
According to the notification issued by the Centre, MGNREGA will stand repealed from the date the new Act comes into effect. The government described the move as a major step towards integrated, productivity-oriented and future-ready rural transformation aligned with the vision of “Viksit Bharat @2047.”
Under the new framework, workers seeking employment will continue to receive statutory guarantees, including unemployment allowance if work is not provided within the prescribed timeframe.
The government said wages would continue to be transferred directly into workers’ bank or post office accounts through Direct Benefit Transfer (DBT). Payments are to be made weekly or within 15 days of closure of the muster roll, failing which workers would be entitled to delay compensation under the provisions of the Act.
For implementation of the programme, the Centre has allocated ₹95,692.31 crore for the financial year 2026–27, described as the highest-ever Budget Estimate allocation for a rural employment programme. Including state contributions, the total outlay is expected to exceed ₹1.51 lakh crore.
Officials said the programme is aimed at strengthening rural livelihoods, generating large-scale employment and accelerating village-level infrastructure development.
The government also assured a smooth transition from MGNREGA to the new framework, stating that all ongoing works under MGNREGA till June 30, 2026, would continue seamlessly under VB–G RAM G.
Existing e-KYC verified MGNREGA Job Cards will remain valid until new Gramin Rozgar Guarantee Cards are issued. Workers without Job Cards can continue to register at Gram Panchayat level and no eligible worker would be denied employment due to pending e-KYC formalities.
The Ministry of Rural Development is currently preparing draft rules related to the implementation of the Act in consultation with States and Union Territories. These include rules on wage payments, grievance redressal, transitional provisions, administrative expenditure and allocation mechanisms.
The Centre said the Act aims to place Gram Panchayats at the centre of rural transformation and is expected to provide fresh momentum to employment generation, self-reliance and sustainable rural development across the country.
