The Indian government on Monday, 11 May 2025, released a detailed set of frequently asked questions (FAQs) explaining the Viksit Bharat–G RAM G Act, 2025, a landmark rural employment legislation that will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from 1 July 2026. The new law provides a statutory guarantee of 125 days of unskilled wage employment per financial year to eligible rural households, up from the existing 100-day guarantee, and aims to align rural development with the vision of Viksit Bharat 2047.

What the New Law Changes

The Viksit Bharat–G RAM G Act will be implemented simultaneously across all states and Union Territories from 1 July 2026, as notified by the Central Government. The most significant change is the enhancement of the employment guarantee from 100 days to 125 days per financial year for every rural household whose adult members volunteer to undertake unskilled manual work.

Existing MGNREGA Job Cards for workers who have completed e-KYC will remain valid until new Gramin Rozgar Guarantee Cards are issued under the new Act. New households can register by submitting names, ages, and address details through any adult member to the concerned Gram Panchayat. Employment applications can be made orally, in writing using the existing Form 6, or through digital platforms.

Transition from MGNREGA: What Happens to Ongoing Works

Employment under MGNREGA will continue in an uninterrupted manner until the commencement of the new Act on 1 July 2026. Ongoing works under MGNREGA as on the date of commencement will be seamlessly migrated and prioritised for completion under the provisions of the new Act, ensuring that public assets are not left incomplete.

Where ongoing works are insufficient to meet employment demand during the transition period, new works from the shelf consistent with Schedule I of the Viksit Bharat–G RAM G Act may be taken up. The government has stated that adequate labour budgets have been made available to states and Union Territories to ensure uninterrupted employment and timely wage payments during this period.

Wages, Timelines, and Worker Protections

Under the new Act, employment must be provided within 15 days from the date of application. If employment is not provided within this period, workers are entitled to an unemployment allowance — not less than one-fourth of the notified wage rate for the first 30 days of the financial year, and not less than one-half for the remaining period, payable by the respective state government.

Wages will be paid weekly or within a fortnight of the closure of the muster roll, directly to workers' bank or post office accounts via Direct Benefit Transfer (DBT). In the event of delayed payment, workers are entitled to a delay compensation of 0.05% of unpaid wages per day of delay. Enhanced wage rates will be notified under Section 10 of the Act; until then, existing MGNREGA wage rates will apply.

Attendance at worksites will be captured through a face authentication-based mechanism, with an exception-handling provision for cases involving poor network connectivity, technical issues, or other exceptional circumstances. Worksites must provide safe drinking water, shade for children, rest periods, and a first aid box. Work will generally be provided within a radius of 5 kilometres of the applicant's village; if provided beyond that but within the block, workers receive an additional 10% of the wage rate for transport and living expenses.

Governance Structure and Fund Sharing

Gram Panchayats will play a central role in implementation, including household registration, receiving employment applications, executing works, maintaining records, and preparing Viksit Gram Panchayat Plans (VGPPs). At the block level, an officer not below the rank of Block Development Officer will function as Programme Officer, while the District Collector or equivalent officer will serve as the District Programme Coordinator (DPC).

The fund-sharing pattern under the Act is: 90:10 (Centre:State) for North Eastern and Himalayan States; 60:40 for other states and UTs with legislature; and 100% Central funding for UTs without legislature. State-wise normative allocations will be determined by the Central Government based on objective parameters prescribed under the Act. Transparency at worksites will be ensured through a mandatory Janata Board displaying work details, estimated labour days, material quantities, and item-wise costs. State governments are also required to notify a period covering peak agricultural seasons — such as sowing and harvesting — during which works under the Act shall not be undertaken, to ensure adequate farm labour availability.

With the 1 July 2026 commencement date now confirmed, all states are required to notify their schemes consistent with the Act's provisions within the prescribed period, setting the stage for the most significant overhaul of India's rural employment guarantee framework in two decades.