India, May 11 -- The Government of India has issued a release:
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 seeks to transform the rural employment framework by aligning wage employment with sustainable development and the vision of Viksit Bharat @2047. The Act enhances the statutory employment guarantee from 100 to 125 days in every financial year for all rural households. The framework prioritizes water security, rural infrastructure, livelihood assets, and disaster preparedness through outcome-oriented works and digitally integrated planning. Technology-enabled governance through biometric authentication, geo-referencing, digital monitoring, and time-bound wage payments aims to strengthen transparency and accountability. Mandatory social audits, structured oversight mechanisms, and grievance redressal systems further reinforce implementation. The Act positions rural employment as a productive driver of sustainable village development and durable asset creation.
Historic Operationalisation of the VB-G RAM G Act Across All Rural Areas of the Country
The Government of India has notified the commencement of the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin): VB-G RAM G (विकसित भारत-जी राम जी) Act, 2025 across all rural areas of the country with effect from 01/07/2026. With the coming into force of the VB - G RAM G Act, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, stands repealed from the same date. This marks a historic transition in India's rural development framework and ushers in a new era of integrated, future-ready, and productivity-oriented rural transformation aligned with the national vision of Viksit Bharat @2047.
The Commencement of the Act marks a historic transition from the earlier framework of Mahatma Gandhi NREGA towards a modern rural development architecture that combines livelihood security, durable asset creation, technology-enabled governance, convergence-driven planning, and climate resilience.
The Act establishes a statutory guarantee of 125 days of wage employment in every financial year to every rural household whose adult members volunteer to undertake unskilled manual work. This enhanced guarantee is expected to provide renewed momentum to rural household incomes, livelihood security, village-level infrastructure creation, and sustainable rural development. Simultaneously, it seeks to create durable and productive rural infrastructure that strengthens water security, rural infrastructure, rural livelihoods, local economic growth, and resilience against climate-related challenges.
Background and Need for Reform
For several decades, wage-employment programmes have formed an integral component of India's rural development strategy, providing income support to rural households facing under-employment and livelihood insecurity.
Over time, the rural economy has undergone significant transformation due to expanded social protection, improved physical and digital connectivity, enhanced financial inclusion, and diversification of livelihoods. These developments necessitate a recalibration of the existing rural employment framework to align with contemporary needs and aspirations, as well as with the national vision of Viksit Bharat @2047.
In furtherance of this objective, it is proposed to strengthen the livelihood guarantee framework by enhancing the statutory employment guarantee from one hundred days to one hundred and twenty-five days in a financial year. The enhanced guarantee is intended to support the accelerated pace of rural development, provide greater income security, and empower rural households through expanded employment opportunities.
Accordingly, it has been enacted a new legislation titled the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin): VB- G RAM G Act, 2025, to establish a future-ready rural development framework that integrates livelihood security with productivity, convergence, resilience, and sustainable asset creation, in alignment with the Viksit Bharat @2047 vision.
The VB-G RAM G Act, 2025 is a comprehensive legislative reset designed to align rural employment with the national vision of Viksit Bharat @2047. Passed by Parliament in December 2025, the Act replaces the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. It shifts the focus from a standalone welfare intervention to an integrated instrument of development and resilient infrastructure.
Enhanced Livelihood Guarantee and Worker-Centric Framework
A central feature of the Act is the enhancement of the statutory employment guarantee from 100 days to 125 days in every financial year for all rural households. The enhanced guarantee is intended to strengthen livelihood security, improve income stability, support rural consumption and provide greater economic resilience to vulnerable households.
The framework has been designed around the principle of "Rozgar Bhi, Samman Bhi"- employment with dignity. The objective is not merely to provide wage employment, but to ensure that rural workers become active participants in the creation of durable and productive public assets that contribute to long-term village development.
The transition from Mahatma Gandhi NREGA to the new framework has also been designed in a seamless and worker-friendly manner. Existing e-KYC-verified Job Cards shall continue to remain valid until Gramin Rozgar Guarantee Cards are issued. Workers who do not currently possess Job Cards may apply at the Gram Panchayat level for registration and issuance of new cards. Workers shall not be denied employment merely due to pending e-KYC, and facilitation mechanisms have been provided for completion of e-KYC, including at worksites, wherever necessary.
Workers may continue to demand employment orally, in writing through the existing Form-6 framework, or through digital platforms. Employment shall continue to be provided within the prescribed timeframe, failing which workers shall remain entitled to unemployment allowance as per the provisions of the Act. The unemployment allowance shall be payable at not less than one-fourth of the notified wage rate for the first thirty days of the financial year and at not less than one-half of the notified wage rate for the remaining period of the financial year, thereby strengthening the legal guarantee of employment and the accountability of the implementation framework.
Timely Wage Payments and Strengthened Transparency
The Act places strong emphasis on timely, transparent, and accountable wage payments. Wages shall continue to be transferred directly into workers' bank or post office accounts through Direct Benefit Transfer (DBT), thereby strengthening transparency and reducing delays.
Under the framework, wages are to be paid weekly or, in any case, within fifteen days from the closure of the muster roll. In cases where wages are delayed beyond the stipulated period, workers shall be entitled to delay compensation in accordance with the provisions of the Act. The Act further provides that where payment of wages is not made within fifteen days from the date of closure of the muster roll, wage seekers shall be entitled to receive compensation for the delay at the rate of 0.05 percent of the unpaid wages for every day of delay beyond the sixteenth day after closure of the muster roll. These provisions are intended to strengthen accountability in wage disbursement and ensure timely payment to workers.
Attendance at worksites shall be captured through NMMS-enabled systems and face authentication-based attendance mechanisms. At the same time, suitable exception handling provisions have also been incorporated to ensure that genuine workers are not adversely affected due to technical or connectivity-related issues.
A Seamless Transition: "Rozgar Bhi, Samman Bhi"
The government's primary intention is a smooth transition that protects the interests of the rural workforce under the Act.
The Government's highest priority remains ensuring timely availability of employment and prompt payment of wages to workers. In order to ensure uninterrupted employment opportunities, adequate labour budget has been made available to States and Union Territories in alignment with emerging demand patterns and field requirements.
Historic Budgetary Commitment
The Government of India has made extensive financial provisions for operationalisation of the new framework across the country. For FY 2026-27, a provision of Rs.95,692.31 crore has been made as Central share under the programme. This is the largest allocation for a rural employment programme at the Budget Estimate stage to date. This provision clearly reflects the priority, scale and commitment of the Government, through which employment and livelihood opportunities in rural areas are expected to gain new momentum.
Including the estimated State share, the total programme outlay is expected to exceed Rs.1.51 lakh crore. The massive financing reflects the Government's credible commitment of driving large-scale transformation in the rural economy, promoting employment generation, creating durable village-level assets and ensuring significant growth in the income of rural households.
Field Functionaries: Capacity, Accountability, and Efficiency
The role of field-level functionaries, such as POs, Mates, and Gram Rozgar Sevaks (GRS) and others, is pivotal in the smooth transition to VB-G RAM G. Under this Act, administrative expenditure has been increased from 6 percent to 9 percent, which will promote capacity building, training, strengthening of human resources, payment of remuneration, and improved implementation at the field level. This systematic reform will ensure that personnel working at the grassroots become more efficient and empowered.
Expanded Scope of Work: New Momentum to Development
Under the Viksit Bharat-G RAM G Act, 2025, the scope of works has been significantly expanded and aligned with the goal of Viksit Bharat@2047. Works are structured into four major thematic areas: water security, core rural infrastructure, livelihood-related infrastructure, and works to mitigate extreme weather events. This enables a more outcome-oriented and cohesive approach in implementation.
Permissible works under the Act are not limited to traditional labour-based activities but also include multi-dimensional works that directly enhance the quality of rural life, while also creating durable assets that generate further livelihood opportunities. This approach is based on the principle of "employment as well as dignity", in which workers are active participants in the development process.
Thematic prioritisation of works has been introduced to ensure that each day of employment contributes towards creation of durable and productive rural infrastructure.
Water security works shall include irrigation support, groundwater recharge structures, watershed development, rejuvenation of water bodies, afforestation and rainwater harvesting structures aimed at strengthening long-term water resilience across rural regions.
Core rural infrastructure works shall include rural roads, public buildings, school infrastructure, Anganwadi centres, sanitation systems, renewable energy infrastructure, housing-related works and works under various Government schemes, thereby improving access to basic amenities and public services.
Livelihood-related infrastructure shall include rural markets, storage infrastructure, food processing units, cold storage facilities, livestock infrastructure, fisheries infrastructure, compost units and skill development centres. These interventions are expected to strengthen local livelihoods, diversify rural incomes and support agro-based economic activities.
The framework also prioritises works related to mitigation of extreme weather events and climate resilience, including flood management structures, embankments, cyclone shelters, post-disaster restoration and forest fire management works.
Through this thematic approach, rural employment is directly linked with productive asset creation, local economic development, and resilience-building.
These works will ensure employment generation, value addition, expansion of agro-based industries and improved service availability, thereby bringing stability to the rural economy and diversifying income sources.
Balance During Agricultural Season: Protection of Interests of Both Farmers and Workers
To facilitate adequate availability of agricultural labour during peak sowing and harvesting seasons, the Act empowers States to notify an aggregated pause period aggregating to sixty days in a financial year (Section 6).
The full 125-day employment guarantee remains intact, to be provided during the remaining period, ensuring a calibrated balance that supports both agricultural productivity and worker security.
Viksit Gram Panchayat Plan (Planning Framework)
In line with the vision of Viksit Bharat @2047, rural India is entering a new and transformative phase. The direction of development is no longer limited to wage employment, but is evolving towards an integrated model of "employment, livelihood and the creation of productive assets." The Viksit Bharat-G RAM G Scheme reflects this comprehensive and decentralized approach, placing Gram Panchayats at the centre of development and empowering them with real authority in planning and implementation. Through the preparation of Viksit Gram Panchayat Plans, Gram Panchayats will themselves decide the direction of their development.
Under this framework, the planning process has been structured as a bottom-up approach, wherein Gram Panchayats identify and prioritise works based on local needs through Gram Sabhas, with consolidation at the Block, District and State levels. This system is integrated with PM Gati Shakti, GIS and digital platforms, ensuring scientific and spatial planning.
Worksite Facilities: Emphasis on Dignity and Safety of Workers
Under Schedule II of the Viksit Bharat- G RAM G Act, 2025, worksite facilities have been given a legal guarantee, which elevates it beyond an administrative arrangement and makes it a strong symbol of dignity of labour and human respect. Under this provision, the availability of clean drinking water at every worksite has been made mandatory. Particularly keeping in mind the summer conditions in rural India, adequate arrangements for shade and rest areas have been ensured to protect workers from heat. Additionally, the availability of a first-aid kit at every worksite has also been ensured, so that the safety and health of workers are prioritised.
To promote the participation of women workers, a key provision has been incorporated in the Act. At worksites where five or more children below the age of five are present, a woman worker will be appointed to take care of the children and will be paid at the prescribed wage rate. This arrangement not only ensures continuity of work for women but also makes the worksite more inclusive and responsive to their needs.
In addition, to ensure the safety of workers, the right to free medical treatment in case of accidents has been provided. If hospitalisation is required, provisions will be made for accommodation, treatment, medicines and a daily allowance equal to half the wage rate. In cases of death or permanent disability, ex-gratia assistance will be payable as per the provisions of the Pradhan Mantri Suraksha Bima Yojana. Thus, the Act ensures a comprehensive framework of safety, sensitivity and social security at the worksite.
Transparency and accountability at worksites shall also be strengthened through mandatory Janata Boards displaying details relating to sanctioned works, labour estimates, expenditure and material utilisation. The framework further provides for weekly public disclosure systems, geo-tagging of assets, real-time dashboards, mobile-based monitoring and strengthened social audits to ensure transparency, community participation and effective public oversight at the grassroots level
Special Exemptions in Implementation
In the event of natural disasters or other extraordinary circumstances, the Central Government will be empowered to grant special exemptions as required. This will ensure that relief and rehabilitation activities in affected areas can be carried out swiftly and without interruption, and that affected communities receive timely assistance.
Salient Features of the VB- G RAM G Act
Alignment of Rural Development Framework with Viksit Bharat 2047:
The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin): VB-G RAM G (विकसित भारत-जी राम जी) Act,2025 is crafted to align the rural development framework with the national vision of Viksit Bharat @ 2047, so that wage employment, asset creation, and public investment together build a more prosperous, resilient and inclusive rural Bharat. Rural works are positioned as a central instrument to deliver better infrastructure, stronger livelihoods and greater climate resilience in villages, ensuring that Viksit Bharat is realised through Viksit Panchayat.
Convergence and Saturation based Approach
To translate this vision into practice, the Act adopts a convergence and saturation-based approach that brings together complementary Government schemes within a single, coherent rural development architecture. Funds, departments and programmes are expected to work in harmony at the Gram Panchayat level, with planning aimed at covering all eligible households and systematically closing critical gaps, rather than supporting scattered or one-off works.
Thematic, Asset Focused Public Works
On this foundation, the Act uses a structured thematic prioritisation of public works so that each day of guaranteed employment creates productive and durable rural assets. All works identified through the Viksit Gram Panchayat Plans (VGPPs) are integrated into the Viksit Bharat-National Rural Infrastructure Stack (VB‑NRIS), creating a unified and forward-looking rural infrastructure framework fully aligned with the Viksit Bharat vision.
Four Priority Thematic Areas
Water security: Water related works such as conservation structures, irrigation support, groundwater recharge, rejuvenation of water bodies, watershed development and afforestation will strengthen water security across rural regions.
Core rural infrastructure: Essential civic, social and service‑ delivery assets-rural roads, public buildings, school infrastructure, sanitation systems, renewable energy facilities and housing work under Central Government schemes-will ensure better basic amenities and improved access to services.
Livelihood related infrastructure: Productive assets for agriculture, livestock, fisheries, storage, markets, skill development, and circular economy models will support sustainable livelihoods, value addition, and diversified rural income opportunities.
Special works for extreme weather events: Disaster preparedness and climate adaptation works-such as shelters, embankments, flood management structures, rehabilitation works, and forest fire management-will help create climate-resilient villages.
Through this thematic focus, the Act ensures that public works simultaneously advance water security, strengthen core rural systems, expand livelihood opportunities and build resilience, thereby supporting empowerment, growth, convergence and saturation in line with the national vision of Viksit Bharat 2047.
Modern, Technology enabled Governance
The Act establishes a modern, transparent and technology enabled governance architecture to ensure effective implementation, accountability and high integrity service delivery. In a rural India marked by deeper digital penetration, improved connectivity and expanded public infrastructure, governance systems will be strengthened through digital public infrastructure, real time monitoring and enhanced transparency mechanisms.
The framework provides for biometric authentication, mobile based monitoring, spatial technology enabled planning, real time dashboards, AI enabled analytics and citizen engagement platforms. These systems ensure accurate verification of workers, functionaries and transactions, improve oversight and support timely reporting and corrective action across all stages of implementation.
A strengthened Social Audit mechanism forms a core part of this architecture, enhancing community participation and reinforcing transparency and accountability at the village level. In addition, a National Level Steering Committee and State Level Steering Committees will review, monitor, and evaluate implementation in their respective areas, ensuring coordinated oversight and a whole of government approach.
By embedding this modern, technology-enabled governance ecosystem, the Act enables predictable service delivery, reduces duplication, improves the quality of assets, and supports empowerment, growth, convergence, and saturation. This governance architecture ensures that rural Bharat is equipped with the systems necessary to advance towards the national vision of Viksit Bharat @ 2047.
Key Statutory Provisions
a) Enhanced livelihood guarantee
The principal objective is to align rural development with Viksit Bharat @ 2047 by strengthening the livelihood guarantee framework through 125 days of wage employment per financial year for rural households whose adult members volunteer for unskilled manual work.
b) Integration into VB‑ NRIS
All works will be aggregated into the Viksit Bharat National Rural Infrastructure Stack, with priority to water security through water-related works, core rural infrastructure, livelihood related infrastructure, and special works to mitigate extreme weather events.
c) VGPP based planning
Planning will be undertaken through Viksit Gram Panchayat Plans, prepared by Gram Panchayats and integrated with national spatial planning systems, including PM Gati Shakti, while factoring in varying local developmental needs.
d) Securing peak agricultural seasons
States will be empowered to notify in advance, a period aggregating to 60 days in a financial year covering peak sowing and harvesting during which works under the Act will not be undertaken, facilitating sufficient farm labour at critical times.
e) Centrally Sponsored Scheme
The scheme will be implemented as a Centrally Sponsored Scheme with shared responsibilities between the Centre and States.
f) Normative Allocation
To promote inclusive growth and equitable distribution of financial resources in a fair manner, the Central Government will make Normative Allocation to each State based on objective parameters prescribed in the Rules; expenditure beyond this will be the responsibility of the State. States will ensure transparent and need-based intra-state distribution of funds across districts and gram panchayats, taking into account the category of the panchayats and local developmental needs, thereby strengthening equity, transparency and accountability.
g) Special relaxations
During natural calamities or extraordinary circumstances, the Central Government may make temporary relaxations for timely response and relief.
h) Transparency and accountability
Biometric authentication, spatial technology enabled planning, mobile and dashboard-based monitoring, weekly public disclosure systems and a strengthened Social Audit mechanism will ensure transparency and accountability.
i) Institutional Oversight
The Central Gramin Rozgar Guarantee Council and the State Gramin Rozgar Guarantee Councils shall be constituted for review, monitoring and effective implementation of the provisions of the legislation in their respective areas. Steering committees at Central and State Level shall be constituted to recommend on matters concerning normative allocations, convergence and other such matters.
j) Wage rate specification
Wage rates for unskilled manual work will be notified by the Central Government;
k) State schemes within six months
Every State Government must notify its Scheme, as per the provisions of the Act, within six months of the Act's commencement.
l) Unemployment allowance
If eligible applicants are not provided work within the stipulated period, such workers will be paid unemployment allowance as per the provisions in the Act.
m) Minimum legal guarantees for labour
The Act lays down minimum features and conditions to protect labourers' legal guarantees and rights under the Scheme.
Reference
Ministry of Rural Development
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Disclaimer: Curated by HT Syndication.
