Viksit Bharat Guarantee Act to replace MGNREGA from 1 July, offering 125 days of rural work

The Centre announced on Monday that the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin Act (VB-G RAM G) will take effect nationwide from July 1. The notification said it will replace the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The Ministry of Rural Development said the change will apply in all states and Union Territories.

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Under the new framework, rural households with adult members willing to do unskilled manual work will get 125 days of guaranteed wage employment each financial year. That is higher than the 100-day promise under MGNREGA. The ministry said jobs must be offered within the set timeframe. If not, workers will stay eligible for unemployment allowance.

VB-G RAM G Act rollout and transition from MGNREGA

The ministry said the shift from MGNREGA to VB-G RAM G will be smooth and will not affect workers. It said ongoing works as on June 30 will continue under the new system. The notification stated: "Ongoing works under MGNREGA as on June 30 shall be saved and carried over to the new framework seamlessly.\" It also said MGNREGA will stand repealed from July 1.

Existing e-KYC verified MGNREGA job cards will stay valid until new Gramin Rozgar Guarantee Cards are issued. The ministry said workers without job cards can keep registering at the gram panchayat level. It also said workers will not lose work because e-KYC is pending. Draft rules are being prepared with states and Union Territories, and will be published for public consultation.

VB-G RAM G Act wage payment rules and worker entitlements

The Centre said wage payments will remain timely and transparent under VB-G RAM G. Wages will keep going directly to bank or post office accounts through Direct Benefit Transfer. Payments will be made weekly or within 15 days after the muster roll closes. If payments are late, workers will be entitled to delay compensation, the government said.

The Ministry of Rural Development called the change a major shift in rural development policy. It said the law fits the vision of Viksit Bharat @2047. The ministry said the Act aims for a productivity-based rural shift. It also said it will support livelihood security, rural incomes, and village-level infrastructure creation.

VB-G RAM G Act budget allocation and programme outlay

The Centre said Rs 95,692.31 crore has been allocated for 2026-27 for the rural employment programme. It said this is the highest-ever budget estimate allocation for such a programme. After adding expected state contributions, the total outlay may cross Rs 1.51 lakh crore. The government did not change those figures in its statement.

MGNREGA began in 2005 and was a key scheme of the Manmohan Singh government. The Congress-led UPA had described it as \"a landmark in our history in removing poverty from the face of the nation.\" The Centre now says the new law offers a revised structure for rural employment. It also says it strengthens village assets and incomes.

VB-G RAM G Act criticism from Congress and CPI

Congress criticised the announcement and questioned the lack of operating details. Jairam Ramesh wrote on X: \"Todays press release by the Union Ministry of Rural Development on VB-G RAM G adds nothing new to what is already known. It is yet another lazy headline-grabbing exercise by a government that specialises in such exercises. No details have been revealed except to say that they will be released soon,\"

Ramesh also questioned the timeline for implementation and consultations. \"If this replacement for MGNREGA is to be implemented from July 1, 2026, then all operational details should have been available by now. Public consultations and discussions with state governments on these details have to be done in a meaningful manner and not just to complete a formality,\" he said.

Ramesh alleged the new law will centralise control over rural work. \"But let there be no doubt. The only guarantee that VB-G RAM G offers is that of extreme centralisation and weakening of the bargaining power of rural labour,\" Ramesh added. The Congress leader also shared a chart listing what was described as four attacks on the right to work, covering wages, panchayati raj, and state finances.

CPI general secretary D Raja also opposed the move and raised concerns for workers. \"The continued neglect of the social sector, particularly the dismantling of MGNREGS and its replacement with the contractor-driven VB GRAM G Act, reflects a systematic attack on rural employment, decentralisation and workers rights,\" Raja said. The Centre has maintained that work continuity and wage payments will remain protected during the changeover.

With inputs from PTI