New Delhi, 11 May

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

The new Act will have a fresh framework that promises 125 days of statutory wage employment to rural households, it said.

In a statement, the Ministry of Rural Development described it as a "historic transition" in India's rural development architecture, aligned with the vision of "Viksit Bharat @2047".

The Act seeks to usher in a "future-ready and productivity-oriented rural transformation" while strengthening livelihood security, rural incomes and village-level infrastructure development, it said.

According to notifications issued by the ministry, the VB-G RAM G Act will come into force in all states and Union Territories on 1 July, and the MGNREGA will stand repealed from the same date.

The ministry statement assured that the transition from MGNREGA to the new framework would be seamless, without disruption to workers.

"Ongoing works under MGNREGA as on June 30 shall be saved and carried over to the new framework seamlessly," the notification said.

The existing e-KYC verified MGNREGA job cards will remain valid until the new "Gramin Rozgar Guarantee Cards" are issued, it said, adding that workers without job cards can continue to register at the gram panchayat level.

Workers will not be denied employment due to pending e-KYC, the ministry said.

Draft rules related to wage payments, grievance redressal, allocation norms, administrative expenditure and transitional provisions are being prepared in consultation with states and Union Territories and will soon be published for public consultation, it added.

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.

Employment must be provided within the prescribed timeframe; otherwise, workers will remain eligible for unemployment allowance under the Act.

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.

Payments will be made weekly or within 15 days of the closure of the muster roll, failing which workers will be entitled to compensation for delays.

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. Including the likely contribution of states, the total programme outlay is expected to exceed Rs 1.51 lakh crore, it said.