Govt Begins New Rural Employment Era with VB G RAM G Act, 125 Days Work Guarantee from July 1

In a major restructuring of rural employment policy, the Government of India has notified the implementation of the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) VB-G RAM G Act, 2025, marking a historic shift set to begin nationwide from July 1, 2026 . The new framework replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) , which will stand repealed from the same date, signaling a transition toward what the government describes as a more integrated and productivity oriented rural development model aligned with the vision of Viksit Bharat @2047 .

Under the new Act, every rural household whose adult members volunteer for unskilled manual work will be entitled to 125 days of guaranteed wage employment in a financial year. The government has positioned this expansion as a stronger safety net aimed at improving livelihood security, stabilizing rural incomes, and strengthening village level development. If employment is not provided within the prescribed time after demand is made, workers will be eligible for unemployment allowance , reinforcing the statutory nature of the guarantee.

The transition from MGNREGA has been designed to ensure continuity without disruption. Existing job cards will remain valid, and ongoing works will continue until June 30, 2026 , after which they will be carried forward into the new system. Workers will also be able to continue registration at the Gram Panchayat level, and no eligible worker will be denied employment due to pending e KYC , with facilitation mechanisms continuing at the field level.

A strong emphasis has been placed on transparency and timely wage payments. Wages will continue to be transferred directly into bank or post office accounts through Direct Benefit Transfer (DBT) . Payments are expected on a weekly basis or within fifteen days of muster roll closure , with provisions for delay compensation in case of late payment. The government has also made clear that grievance redressal and administrative accountability mechanisms will be strengthened under the new framework.

For the financial year 2026-27 , the Centre has allocated a record ₹95,692 crore , the highest ever for a rural employment programme at the budget estimate stage. With state contributions included, the total outlay is expected to exceed ₹1.51 lakh crore , aimed at accelerating rural infrastructure creation, employment generation, and income growth.

The Act also introduces a broader institutional structure involving national level committees and councils to oversee implementation, along with detailed rules on allocation, payments, grievance redressal, and transitional arrangements. Officials describe the reform as a step toward making Gram Panchayats central pillars of rural transformation, with the objective of building a more resilient and self-reliant rural economy in the years ahead.