In a landmark overhaul of India’s rural employment architecture, the Centre has notified the commencement of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, popularly called the VB-G RAM G Act, replacing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act framework from July 1.
The new legislation marks one of the most significant reforms in rural development policy since the introduction of MGNREGA in 2005. Designed around the national vision of “Viksit Bharat @2047”, the Act seeks to transform rural employment from a welfare-centric programme into a productivity-driven engine for sustainable development, infrastructure creation and climate resilience.
From Welfare to Development-Led Employment
The VB-G RAM G Act increases the statutory employment guarantee for rural households from 100 days to 125 days annually, while linking wage employment directly with village infrastructure, water security, livelihood creation and local economic growth.
The Centre has positioned the reform as a transition from a standalone employment support programme to a comprehensive rural transformation framework.
Under the new structure, wage labour will contribute to durable assets such as irrigation systems, rural roads, watershed projects, storage facilities, sanitation infrastructure, renewable energy systems and climate-resilient public works.
The government has described the model as “Rozgar Bhi, Samman Bhi” – employment with dignity – emphasising that rural workers are not merely beneficiaries but active participants in nation-building and village development.
Historic Budgetary Push
For the financial year 2026-27, the Centre has allocated ₹95,692.31 crore as its share for the programme – the highest Budget Estimate allocation ever made for a rural employment programme in India.
Including state contributions, the total programme outlay is expected to cross ₹1.51 lakh crore.
The Ministry of Rural Development said the massive funding commitment reflects the government’s intention to accelerate rural infrastructure creation, improve livelihoods, strengthen village economies and build climate resilience across rural India.
MGNREGA Officially Repealed
With the commencement of the new Act across all rural areas from July 1, the MGNREGA law stands repealed.
However, the transition has been designed to ensure continuity for workers and ongoing projects.
Existing e-KYC verified job cards under MGNREGA will remain valid until new Gramin Rozgar Guarantee Cards are issued. Ongoing projects under the earlier framework will continue under the new legislation, while fresh projects aligned with the new Act’s priorities can also be launched.
Workers will continue to be entitled to unemployment allowance if employment is not provided within the stipulated timeframe.
Worker Protections and Timely Wage Payments
The Act retains and strengthens legal guarantees related to wage payments and labour protections.
Wages will continue to be transferred directly into bank and post office accounts through Direct Benefit Transfer (DBT). Payments are to be made weekly or within 15 days of closure of muster rolls.
If wages are delayed beyond the prescribed timeline, workers will receive compensation at the rate of 0.05 per cent of unpaid wages for every day of delay after the 16th day.
The legislation also guarantees unemployment allowance for eligible workers who are not provided work. The allowance will be at least one-fourth of the wage rate for the first 30 days and at least one-half thereafter.
Worksite facilities such as drinking water, shaded rest areas and first-aid kits have now been given statutory backing under the law.
In a major provision aimed at supporting women workers, the Act mandates appointment of a childcare worker at sites where five or more children below the age of five are present.
Technology-Driven Governance Model
A key feature of the new framework is its heavy reliance on technology-enabled governance and digital monitoring systems.
Attendance at worksites will be captured through NMMS-enabled systems and face authentication mechanisms, while geo-tagging, GIS-based planning, AI-enabled analytics and mobile monitoring will be used for implementation oversight.
All works undertaken under the programme will be integrated into the Viksit Bharat-National Rural Infrastructure Stack (VB-NRIS), creating a unified digital infrastructure platform linked with PM Gati Shakti and spatial planning systems.
The Act also mandates strengthened social audits, public disclosure systems, real-time dashboards and biometric authentication to improve transparency and reduce leakages.
Four Major Development Themes
The programme’s works have been grouped into four major thematic areas:
Water Security: Projects related to groundwater recharge, watershed development, rainwater harvesting, irrigation support, rejuvenation of water bodies and afforestation.
Core Rural Infrastructure: Rural roads, schools, Anganwadi centres, sanitation systems, renewable energy assets and housing-related infrastructure.
Livelihood Infrastructure: Storage units, rural markets, cold chains, fisheries infrastructure, compost units, food processing facilities and skill development centres.
Climate and Disaster Resilience: Flood management structures, embankments, cyclone shelters, forest fire management and post-disaster restoration works.
The Ministry said this thematic prioritisation ensures that every day of employment contributes to long-term productive asset creation and village-level development.
Agricultural Balance Through Seasonal Pause
To ensure adequate labour availability during sowing and harvesting seasons, states have been empowered to notify an aggregated pause period of up to 60 days annually during peak agricultural operations.
The Ministry said the provision aims to strike a balance between agricultural productivity and employment security without reducing the total 125-day guarantee.
Gram Panchayats at the Centre of Planning
The planning framework under the Act adopts a decentralised “bottom-up” model through Viksit Gram Panchayat Plans (VGPPs).
Gram Sabhas and Panchayats will identify and prioritise local works, which will then be consolidated at block, district and state levels.
The Ministry said the model is intended to strengthen local governance and ensure that rural development planning is aligned with region-specific needs and infrastructure gaps.
Administrative Strengthening and Human Resources
Administrative expenditure under the programme has been increased from 6 per cent to 9 per cent to strengthen field-level implementation.
The additional resources will support capacity building, training, remuneration and institutional strengthening for Programme Officers, Gram Rozgar Sevaks, Mates and other grassroots personnel.
Climate Resilience and Disaster Preparedness
The legislation places significant emphasis on climate adaptation and disaster resilience.
Special relaxations can be granted by the Central Government during natural disasters or extraordinary circumstances to ensure uninterrupted relief and rehabilitation efforts.
The framework integrates climate-sensitive public works directly into rural employment planning, positioning the programme as a long-term resilience-building mechanism for rural India.
A New Rural Development Vision
The VB-G RAM G Act represents a structural shift in India’s rural development philosophy.
By combining employment guarantees with infrastructure creation, convergence of schemes, digital governance and climate resilience, the government aims to reposition rural employment as a foundational pillar of India’s long-term growth strategy.
The Ministry said the legislation is intended to create “Viksit Panchayats” as the building blocks of a “Viksit Bharat” by 2047, while ensuring that employment generation remains closely tied to productivity, sustainability and inclusive rural transformation.
