Centre to replace MGNREGA with new rural jobs scheme from July 1

Congress leaders protest outside Parliament in December, 2025, for repealing MGNREGA. FILE PIC/PTI

The Centre on Monday announced that the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act will come into force across the country from July 1, replacing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The new Act will have a fresh framework that promises 125 days of statutory wage employment to rural households, it said. The Centre said the allocation of Rs 95,692.31 crore for 2026-27 is the highest-ever Budget Estimate allocation for a rural employment programme.

What's VB-G RAM G Act?

Under the VB-G RAM G Act framework, every rural household whose adult members volunteer to undertake unskilled manual work will be entitled to 125 days of guaranteed wage employment in a financial year, an increase from the existing 100-day guarantee under MGNREGA.

Under the Act, the government will provide for an unemployment allowance if work is not provided within 15 days. It also includes childcare support at work sites if five or more children are present.

The government also emphasised timely and transparent wage payments, stating that wages will continue to be transferred directly into workers' bank or post office accounts through Direct Benefit Transfer.

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