In a landmark overhaul of India’s rural employment landscape, the Central Government has enacted the Visit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, commonly known as VB-GRAM G.
Set to take effect on July 1, 2026, the legislation will simultaneously repeal the Mahatma Gandhi National Rural Employment Guarantee Act MGNREGA), which has governed rural wage employment since 2005. The new law marks a decisive shift from a purely welfare-oriented scheme to a broader framework that links guaranteed employment with productive asset creation and the long-term vision of Viksit Bharat @2047.
“The guarantee has been enhanced from 100 days to 125 days per financial year – a 25% increase in assured employment for rural India.”
Key Changes: More Days, Bigger Guarantee
The most immediate change for rural households is the enhancement of guaranteed wage employment from 100 days under MGNREGA to 125 days per financial year. Every rural household whose adult members voluntarily seek unskilled manual work will be entitled to this statutory guarantee. The government has been clear that no disruption will occur at the ground level – existing MGNREGA Job Cards will remain valid until new Gramin Rogar Guarantee Cards are issued, provided that e-KYC has been completed.
Employment must continue to be provided within 15 days of application, and wages will be paid through Direct Benefit Transfer directly into workers’ bank or post office accounts – weekly, or at the latest within a fortnight of muster roll closure. If wages are delayed beyond 15 days, workers are entitled to compensation at 0.05% of unpaid wages per day of délay. If employment itself is not provided within the stipulated period, workers will be entitled to an unemployment allowance: at least one-fourth of the notified wage rate for the first 30 days and at least one-half thereafter.
Transition: Seamless, Not Disruptive
Officials have stressed that the transition from MGNREGA to VB-G RAM G will be seamless. All ongoing MGNREGA works as on July 1, 2026 will continue and be prioritised for completion under the new Act’s framework, so that public assets are not left unfinished. The Central Government has also made adequate labour budgets available to all States and Union Territories to ensure there is no gap in employment availability during the interim period. Where ongoing works are insufficient, States can open new works consistent with the new Act’s Schedule I.
Attendance at worksites will be captured through face authentication-based technology, with exception-handling mechanisms available for areas with poor connectivity or technical difficulties. Work will continue to be provided as close to home as possible – within a 5-kilometre radius and workers employed beyond that distance (but within the Block) will receive an additional 10% of the wage rate for transport and living costs.
Focus on Productive Assets and Rural Planning
A defining feature of the new legislation is its orientation towards durable, community-relevant assets. Works under the Act are organised around four thematic domains: Water Security Works, Core Rural Infrastructure, Livelihood-related Infrastructure, and Extreme Weather Mitigation Works.
No contractors will be permitted; all execution must be through manual labour, reflecting the Act’s twin goals of employment generation and asset creation without displacement of workers by machinery.
Central to implementation is the Viksit Gram Panchayat Plan (VGPP) – a convergence-based, participatory development plan that each Gram Panchayat must prepare and get approved by its Gram Sabha. All works under the Act must originate from a VGPP, ensuring that local priorities, rather than administrative convenience, drive rural development spending. The Act promotes a ‘single-plan, multi-funding’ approach, enabling convergence with Central, State, and local schemes. Housing works under PMAY-G can also be taken up under the new Act for 90/95 person-days wage support.
Governance, Accountability and Transparency
At the district level, the District Collector (or equivalent officer) will function as the District Programme Coordinator, while an officer not below the rank of Block Development Officer will serve as Programme Officer at the block level. Gram Panchayats will continue to be central to registration, work execution, record-keeping, and planning.
Transparency mechanisms include a mandatory ‘Janata Board’ at every worksite – displaying work details, estimated labour days, material quantities, and costs along with weekly public disclosure meetings by Gram Panchayats and digital display of key metrics, muster rolls, payments, and sanctions. Material expenditure has been capped at 40% of total expenditure at the district level.
The fund-sharing pattern reflects regional differentiation: 90:10 (Centre:State) for North Eastern and Himalayan States; 60:40 for other States and UTs with legislatures; and 100% Central funding for UTs without legislatures. Enhanced wage rates will be notified under the new Act; until then, existing MGNREGA wage rates will apply.
The Act also contains provisions to ensure labour availability during peak agricultural seasons – States can notify a period during which works will not be undertaken to avoid drawing labour away from sowing and harvesting. Special relaxations may be granted during natural calamities.
With VB-GRAM G, the government is signalling an ambition to move beyond relief-oriented employment and toward a model where every day of guaranteed rural labour also contributes to the infrastructure, water security, and climate resilience that Viksit Bharat @2047 demands.