President Murmu approves VB-G RAM G Act, replacing MGNREGA, raising job guarantee to 125 days, tightening payments, linking employment with asset creation
President Droupadi Murmu has accorded assent to the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, bringing in a comprehensive restructuring of India’s rural employment system, the Ministry of Rural Development announced on Sunday.
The new law guarantees rural households with adult members willing to undertake unskilled manual work at least 125 days of wage employment each year. The Act also enforces stricter timelines for wage disbursal. Payments must be made weekly or within 15 days of the completion of work, and compensation for delayed payments has been made compulsory.
A significant change under the revised framework is the closer alignment of employment generation with the creation of durable rural assets. Projects will prioritise water conservation, essential rural infrastructure, livelihood-support facilities and initiatives to mitigate the impact of extreme weather. All assets created will be geo-mapped and linked to a national rural infrastructure platform to enhance coordination and prevent duplication.
While planning and execution will remain decentralised through Gram Panchayat plans approved by Gram Sabhas, these plans will be digitally connected to national platforms to improve inter-departmental convergence without diluting local autonomy.
Implemented as a Centrally Sponsored Scheme, the Act follows a 60:40 Centre–state funding pattern, with higher central support for northeastern and Himalayan states. The government said the legislation strengthens accountability, restores unemployment allowance provisions, enhances transparency through technology, and positions rural employment as a key driver of income security and long-term rural resilience.
Box
The new law replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, and increases the statutory guarantee of wage employment for rural households from 100 days to 125 days in a financial year. The overhaul is aimed at strengthening livelihood security while aligning rural employment with the Centre’s long-term vision of ‘Viksit Bharat 2047’.