India Notifies 125-Day Rural Jobs Law, Replacing MGNREGA From July 1
Updated
Updated · Mint · May 11
India Notifies 125-Day Rural Jobs Law, Replacing MGNREGA From July 1
11 articles · Updated · Mint · May 11
July 1 is the rollout date for the VB-G RAM G Act, which the union government formally notified to replace MGNREGA and lift guaranteed rural employment to 125 days from 100.
₹95,000 crore has been earmarked by the Centre for the scheme, rising to more than ₹1.51 trillion with state provisions, while administrative spending increases to 9% from 6%.
Ongoing MGNREGA works will continue during the transition and be migrated into the new framework, with states given up to six months to prepare and late projects automatically funded under the new law.
15 days is the maximum payment window under the revamped programme, with wages sent by DBT to bank or post office accounts and compensation due if payments are delayed beyond that limit.
The law, passed by Parliament in December 2025 and assented to two days later, marks a broader overhaul of India’s rural employment and development framework.
As India replaces its landmark rural job law, will the promise of more workdays be nullified by budget caps and digital barriers?
Is India’s rural job law overhaul a genuine modernization effort, or does it strip away workers' hard-won legal rights?
Will shifting the financial burden to states make the new rural employment scheme more effective or simply bankrupt state governments?
From MGNREGA to VB-G RAM G: India's 125-Day Rural Employment Guarantee and Its Transformative Impact
Overview
India is set for a major shift in rural employment with the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, which was enacted in December 2025 and will take effect nationwide on July 1, 2026. This new law replaces MGNREGA and increases the statutory guarantee to 125 days of wage employment per year for rural households whose adult members volunteer for unskilled manual work. The Act aims to align rural development with the Viksit Bharat @ 2047 vision, marking a significant step toward deeper rural empowerment and more secure livelihoods.