Rural Employment Rules Change from July 1: VB-G RAM G Act to Replace MGNREGA; Know Impact on Wages and More

The Centre announced on May 11, 2026, that the new Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act will take effect nationwide from July 1, bringing the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, to an end.

VB-G RAM G Act to Replace MGNREGA: New Rural Jobs Law to Take Effect from July 1

Through a notification, the Ministry of Rural Development confirmed that MGNREGA will be repealed and replaced by the VB-G RAM G Act, while stressing that workers should not face disruption. It stated, "Ongoing works under MGNREGA as on June 30 shall be saved and carried over to the new framework seamlessly," and clarified that existing e-KYC verified job cards will stay valid until new "gramin rozgar guarantee cards" are issued.

The same notification specified that the VB-G RAM G Act will come into operation across all States and Union Territories on July 1. The Ministry added that draft rules for wage payments, grievance redress systems, fund allocation norms and transitional measures are being framed along with State governments and Union Territories, and will be released soon for public feedback.

MGNREGA to VB-G RAM G Shift: New Applicants Can Still Register at Gram Panchayat Offices

Officials underlined that workers will not be refused work because e-KYC formalities are pending. People who do not yet hold an MGNREGA job card will still be able to enrol at the gram panchayat office, and fresh registration under the rural employment guarantee system will continue at the village level during the shift to the VB-G RAM G Act.

In its statement, the government described gram panchayats as the "central pillar" of rural transformation and linked this role to the new VB-G RAM G Act. According to the Ministry, the legal framework is designed to support employment generation, strengthen rural infrastructure projects and aid self-reliance in villages as responsibilities move away from MGNREGA.

With the July 1 start date fixed, the Centre is presenting the VB-G RAM G Act as the next stage of the national rural employment guarantee framework, with MGNREGA works and verified job cards carried into the new system, and operational rules under preparation with State and local participation.