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force of the VB–G RAM G Act, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 shall stand repealed from the same date.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 30^th 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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