The Government of India has published its official notification, stating that the VB-G RAM G Act will replace the MGNREGA from August 1, 2026. The new scheme provides a minimum of 125 days of wage employment to the rural households as against 100 days under MGNREGA, the Ministry of Rural Development said. In FY 2022-23, the Centre allocated ₹95,692 crore for implementation, which is among the highest allocations to rural employment in India’s history. The job cards already in use will continue to be valid till it becomes operational under the new Act of 2024 and smooth transition will be ensured to continue the ongoing works under MGNREGA.
Key Highlights of VB-G RAM G Act
- The new urban employment model will come into effect from 1st July 2026 in all States and Union Territories of India.
- The Act discontinues the existing MGNREGA from 2005, that has been in effect.
- The rural households will now have a statutory right to 125 days of wage employment annually.
- Main thrust of the scheme is creation of employment, rural infrastructure and enhancement of livelihood.
- Wages will be paid to bank/post office accounts via Direct Benefit Transfer (DBT) payments.
- If wages are missed after the required waiting period, workers will be paid for the wages missed.
- All the e-KYC job cards for MGNREGA will continue to be valid till the issuance of fresh Gramin Rozgar Guarantee Cards.
- All on-going activities in the MGNREGA will be continued and transferred to the new framework.
- The government has announced the biggest budget for the programme for FY 2026-27 of ₹95,692 crore.
- The Act shall be aimed at empowering the Gram Panchayats and building self-reliancy in the rural areas in the vision of Viksit Bharat 2047.
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Conclusion – VB-G RAM G
The VB-G RAM G Act, which comes into effect from July 1, is a major change in the employment policy in India’s rural areas. The government is looking to boost the economic security of millions of households by boosting the number of guaranteed workdays and expanding rural development activities. Existing projects are likely to be continued and MGNREGA are expected to be implemented seamlessly to ensure minimal disruptions to beneficiaries. The new framework is designed with a new unimpeachment budget allocation and with a strong DPB transparency (payments initiated by DBT), in order to bring efficiency and accountability. The Act also supports the overall objective of empowerment of the villages in India, its infrastructure development and sustainable living.
