Centre notifies new law replacing MGNREGA
New Delhi: The Union Government notified the implementation of the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, under which rural households will be entitled to 125 days of guaranteed wage employment annually from July 1, 2026.
The new law, officially titled the Viksit Bharat–G RAM G Act, will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, marking a major overhaul of India’s rural employment framework.
According to an official notification issued by the Ministry of Rural Development, every rural household whose adult members volunteer for unskilled manual work will receive a statutory guarantee of 125 days of employment in a financial year, up from the existing 100 days under MGNREGA.
The government said employment must be provided within the prescribed timeframe, failing which workers would be entitled to unemployment allowance under the provisions of the Act.
Officials said wage payments would continue through Direct Benefit Transfer (DBT) into workers’ bank or post office accounts. Wages are to be paid weekly or within 15 days from closure of the muster roll, failing which workers would receive delay compensation.
The Centre has allocated ₹95,692.31 crore for the programme in the 2026–27 financial year, describing it as the highest-ever Budget Estimate allocation for a rural employment scheme. Including the contribution of states, the total outlay is expected to exceed ₹1.51 lakh crore.
The government said the transition from MGNREGA to the new framework would be “smooth and worker-centric.” Ongoing MGNREGA works as on June 30, 2026, will continue under the new system without interruption.
Existing e-KYC verified MGNREGA job cards will remain valid until new Gramin Rozgar Guarantee Cards are issued. Workers without job cards can continue registering at the Gram Panchayat level, and no worker will be denied employment due to pending e-KYC verification, the ministry said.
The ministry also said draft rules related to grievance redressal, wage payments, unemployment allowance, administrative expenditure and transitional provisions are being prepared in consultation with states and Union Territories and will soon be published for public consultation.
The government said the Act aims to strengthen rural livelihoods, improve incomes and position Gram Panchayats as the central pillar of rural transformation in line with the “Viksit Bharat @2047” vision.
