Daijiworld Media Network – New Delhi
New Delhi, May 11: The Central government has officially announced that the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, also known as the VB-G RAM G Act, will come into force across all states and Union Territories from July 1, 2026, replacing the long-running Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
In a separate notification, the Ministry of Rural Development confirmed that MGNREGA, which has been operational since 2005, will stand repealed once the new law comes into effect. The Centre, however, assured that the transition would be smooth and existing workers would not face disruption in employment.
According to the notification, all projects currently running under MGNREGA as of June 30, 2026, will continue under the new framework without interruption.
The government also clarified that existing MGNREGA job cards linked through e-KYC verification would remain valid until new “Gramin Rozgar Guarantee Cards” are issued. Workers whose e-KYC verification is pending will also continue to receive employment, while fresh registrations for workers without job cards will be carried out through gram panchayats.
The Centre described gram panchayats as the backbone of rural transformation and said the new framework was aimed at improving rural employment opportunities, strengthening village infrastructure and promoting self-reliance under the broader “Viksit Bharat 2047” vision.
Officials said new rules related to wage payments, grievance redressal mechanisms and fund allocation norms are being prepared in consultation with states and Union Territories. Draft rules are expected to be released soon for public feedback.
The new framework is expected to bring significant changes for industries dependent on rural labour. Experts believe guaranteed rural employment and wages could reduce worker availability for sectors such as construction and other labour-intensive private industries.
At the same time, increased rural incomes are expected to boost consumption in villages, benefiting sectors such as FMCG, agriculture inputs and rural-focused businesses.
Industry observers also expect companies to face higher labour costs and stricter compliance requirements once the framework is fully implemented.
The VB-G RAM G Act is being viewed as one of the biggest shifts in India’s rural employment policy in recent years. While MGNREGA primarily focused on wage-based employment generation, the new framework aims to place greater emphasis on long-term rural development, livelihood support and local economic growth.