Centre notifies July 1 as date for implementation of new rural job framework VB–G RAM G

NEW DELHI: Moving to implement the new rural employment framework, the Centre on Monday notified July 1 as the date from when the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act 2025 will come into force. The UPA era Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 shall stand repealed from the same date.

Under the new VB–G RAM G framework, every rural household whose adult members volunteer to undertake unskilled manual work will be entitled to a guarantee of 125 days of wage employment instead of the 100 days under MGNREGA in every financial year.

The ministry of rural development said this step marks a historic transition in India’s rural development framework. Union minister Shivraj singh Chouhan expressed confidence that this scheme will prove to be a milestone in fulfilling the resolve to build "developed villages" as a foundation for a "Developed India."

Chouhan noted that the process of formulating the rules for the new Act is currently underway, following extensive consultations with the states. According to the ministry the rules will be ready soon and put up for public consultations to enable their notification before July 1.

The new Act will be implemented as a centrally sponsored scheme. The cost-sharing pattern is 60:40 between the Centre and States, 90:10 for north eastern and Himalayan states, and 100% central funding for Union Territories without legislatures.

However, Chouhan assured a seamless transition where it will be ensured that no labourer is deprived of employment during this transition phase.

“Ongoing works under MGNREGA as on June 30 shall be saved and carried over in the new framework seamlessly by ensuring consistency with the provisions of Viksit Bharat G RAM G. All e-KYC verified MGNREGA Job Cards shall remain valid under VB–G RAM G until Gramin Rozgar Guarantee Cards are issued,” the ministry said. Around 91% of around 12 crore active workers have been verified so far.

“Workers without Job Cards will not be denied employment merely due to pending e-KYC, and facilitation arrangements for e-KYC completion shall continue at the field level by the state govts,” the ministry added.

As laid out in the law, from the commencement of the Act, states will get six months thereafter to make their schemes to enable implementation of the law on ground.

However, it is learnt from officials that a scheme template has already been shared with states and many are likely to be ready with their schemes earlier than the six month period.

For the financial year 2026–27, the Central government has made a budgetary allocation of Rs 95,692.31 crore, which it cited was the highest-ever allocation at the budget estimate stage for a rural employment programme. Including the likely contribution of the states, the total programme outlay is estimated to exceed Rs 1.51 lakh crore.

Meanwhile, reacting to the announcement, Congress on Monday described it as "yet another lazy headline-grabbing exercise" and alleged that the only guarantee that the law offers is that of "extreme centralisation" and "weakening of the bargaining power of rural labour".

Congress general secretary in charge of communications, Jairam Ramesh in a post on X said, "today's press release by the Union Ministry of Rural Development on VB-G RAM G adds nothing new to what is already known. It is yet another lazy headline-grabbing exercise by a government that specialises in such exercises. No details have been revealed except to say that they will be released soon."

"If this replacement for MGNREGA is to be implemented from July 1, 2026, then all operational details should have been available by now. Public consultations and discussions with state governments on these details have to be done in a meaningful manner and not just to complete a formality," he added.

"But let there be no doubt. The only guarantee that VB-G RAM G offers is that of extreme centralisation and weakening of the bargaining power of rural labour," Ramesh added.

The Congress leader further alleged that the "Constitutional right to work and the right to wages of rural Indian families is being stolen. He also shared a chart on 'X' that listed "Modi government's four attacks on your right to work" alleging that through the VB G RAM G Act, the government is "attacking" the right to work, right to fair wages, panchayati raj and state finances.