New Delhi, May 11, 2026: The Government of India has officially announced the implementation of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB–G RAM G Act, 2025, which will come into effect across the country from July 1, 2026. With the rollout of the new legislation the existing (MGNREGA), introduced in 2005, will stand repealed. The government described the move as a historic transformation in India’s rural employment and development framework aligned with the vision of Viksit Bharat @2047. Under the new Act, every rural household with adult members willing to undertake unskilled manual work will receive a legal guarantee of 125 days of wage employment every financial year an increase from the current 100-day provision under MGNREGA.
The Centre stated that workers demanding employment must be provided work within the prescribed period. If employment is not provided on time eligible workers will continue to receive unemployment allowance as per the law. The government has also assured that wage payments will remain transparent and timely through Direct Benefit Transfer (DBT). Payments will continue to be credited directly into workers’ bank or post office accounts. Wages are expected to be paid weekly or within 15 days of muster roll closure failing which workers will be entitled to delay compensation.
For the financial year 2026–27 the Union Government has earmarked a record allocation of ₹95,692.31 crore for the programme the highest-ever Budget Estimate for any rural employment initiative in India. Including the expected contribution from state governments, the total programme outlay is likely to cross ₹1.51 lakh crore. The government said the enhanced financial allocation is expected to boost rural infrastructure development, generate large-scale employment opportunities and strengthen village economies.
To ensure a smooth transition, all ongoing works under MGNREGA until June 30, 2026, will continue without interruption and will be integrated into the new framework. Existing e-KYC verified MGNREGA job cards will remain valid until new Gramin Rozgar Guarantee Cards are issued.
The Ministry of Rural Development is also preparing draft rules related to wage payments, grievance redressal, administrative expenditure and transitional arrangements in consultation with states and union territories. According to the government the Viksit Bharat G RAM G Act, 2025 is expected to become a major pillar of rural transformation by empowering Gram Panchayats, improving livelihoods, and accelerating employment-led development across rural India.
