The Viksit Bharat, Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, or VB-G RAM G Act, came into force across rural India on 1 July 2026. It replaced the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, which had provided a statutory guarantee of wage employment in rural areas.
Statutory Wage Employment Guarantee
The VB-G RAM G Act raises the guaranteed wage employment for eligible rural households from 100 days to 125 days in a financial year. The scheme continues the legal framework of rural employment guarantee under a central law passed by Parliament.
Wage Rates and Funding Pattern
The Ministry of Rural Development notified revised wage rates on 30 June 2026. The national average daily wage increased from ₹298.8 under MGNREGA to ₹327.4 under VB-G RAM G, with an average rise of ₹28.6 per day. An interim wage floor of ₹300 per day applies from 1 July 2026, and no notified wage can fall below this level. The interim allocation for states and Union Territories is ₹95,692.31 crore for transition support and wage payments. The funding pattern for most states is 60:40 between the Centre and the States, while North-Eastern and Himalayan states receive 90:10 support.
Implementation, Job Cards and Transition
Existing e-KYC-verified MGNREGA job cards remain valid until new Gramin Rozgar Guarantee Cards are issued. Data transfer to the new system is expected to take six months and continue until 31 December 2026. About two dozen states and Union Territories had issued the required notifications by 30 June 2026, and 29 states and Union Territories had made budgetary provisions.
Important Facts
- MGNREGA was enacted in 2005 and provided a legal guarantee of 100 days of wage employment in a financial year.
- The VB-G RAM G Act is linked to rural livelihood security and asset creation in rural India.
- North-Eastern states and Himalayan states receive a 90:10 Centre-State funding ratio under the new framework.
- e-KYC verification remains relevant for the validity of existing job cards during the transition period.