The Central government has officially announced that the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin), also known as the VB-G RAM G Act, 2025, will come into force across all states and Union Territories from July 1, 2026. With this move, the government is set to replace the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a new rural employment framework aimed at strengthening jobs, livelihoods and infrastructure in villages under the broader “Viksit Bharat” vision.
MGNREGA to be repealed
In a separate notification, the Ministry of Rural Development confirmed that MGNREGA, which has been in place since 2005, will officially be repealed once the new law takes effect. However, the government assured that the transition will happen smoothly and workers currently employed under MGNREGA will not face any disruption.
According to the notification, all ongoing projects under MGNREGA as of June 30, 2026, will continue seamlessly under the new system.
Existing job cards to remain valid
The government also clarified that existing MGNREGA job cards linked through e-KYC verification will remain valid until new “Gramin Rozgar Guarantee Cards” are issued. Importantly, workers will not be denied employment even if their e-KYC process is pending. Registration for new workers without job cards will continue through gram panchayats.
Focus on rural development and self-reliance
The Centre described gram panchayats as the backbone of rural transformation and said the new law is designed to improve employment opportunities, village infrastructure and self-reliance in rural India.
Officials said fresh rules regarding wage payments, grievance redressal systems and allocation norms are currently being prepared in consultation with states and Union Territories. These draft rules are expected to be released soon for public feedback.
What the new law could mean for industry
Experts believe the new employment guarantee framework could have a mixed impact on industries that depend heavily on rural labour. On one hand, guaranteed rural employment and wages may reduce the availability of workers for sectors such as construction and private labour-intensive industries.
On the other hand, increased income in villages is expected to boost rural consumption, which may benefit sectors like FMCG, agriculture inputs and rural-focused businesses. Industry watchers also believe companies may face higher labour costs and greater compliance requirements once the new framework is fully implemented.
The VB-G RAM G Act is being seen as one of the biggest changes in India’s rural employment policy in recent years. While MGNREGA focused mainly on wage-based employment generation, the new framework is expected to place greater emphasis on long-term rural development, livelihood support and local economic growth.
