New Rural Employment Guarantee Scheme To Replace MNREGA From 1 July, Govt Says

(MENAFN- Live Mint) The union government on Monday notified the implementation of the Viksit Bharat – Guarantee for Employment and Livelihood Mission (Gramin) or VB-G RAM G Act, 2025, paving the way for the revamped rural employment programme to be rolled out across the country from 1 July.

The new law will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and increase the guaranteed employment period for rural households from 100 days to 125 days a year, the rural development ministry said in a statement.

Parliament passed the VB-GRAM G Bill, 2025 on 19 December 2025, with President Droupadi Murmu granting her assent just two days later. The move signals a decisive overhaul of India's rural employment and development framework.

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Announcing the notification during an interaction with the media in Bhopal, Union agriculture and rural development minister Shivraj Singh Chouhan said from 1 July, labourers seeking employment in rural areas will get 125 days of guaranteed employment in a year.

He added that in the intervening time, ongoing works under MGNREGA may continue as per the provisions of the VB-G RAM G Act. These works will be seamlessly migrated and prioritized for completion, ensuring that public assets are not left incomplete and community benefits continue, he said.

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Chouhan also said that while rules for the new law are being finalized in consultation with state governments, the ministry's primary objective is to prevent any disruption in work for labourers during the transition. He added that all necessary administrative measures have been implemented to ensure continuous employment.

He noted that states have been given up to six months to complete the necessary preparations for the mission. He also clarified that for any state failing to meet the 1 July deadline, all subsequent projects will automatically be funded and governed under the new VB-GRAM G framework.

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The union government has set aside more than ₹95,000 crore in its budget to provide employment under the scheme. Chouhan said states have also made provisions for it in their respective budgets, taking the total budget to more than ₹1.51 trillion. He said administrative expenses have been increased from 6% to 9% to ensure adequate and timely salary payments.

Wage payments will be disbursed directly into workers' bank or post office accounts via direct benefit transfer (DBT ), the minister said. While the government aims to process payments within three days, the entire transaction must be completed within a maximum of 15 days. If a payment exceeds this 15-day limit, workers will be entitled to compensation, he added.

Chouhan said the mission will prioritize four key developmental areas:

Water conservation: Prioritizing projects that enhance local water security. Core rural infrastructure: Building and repairing roads, bridges, schools, and Anganwadi centers. Livelihood assets: Constructing working sheds and dedicated facilities for self-help groups (SHGs) and farmer producer organizations (FPOs). Disaster resilience: Developing protective structures, such as retaining walls in flood-prone or waterlogged areas.

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