The Centre on Saturday released draft rules under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, setting the stage for the new rural employment law to replace MGNREGAfrom July 1.
The rules have been put out for public consultation before they are finalised. They cover key areas such as the transition from MGNREGA to VB-G RAM G, wage payments, unemployment allowance, grievance redressal, administrative expenses, and the role of central-level monitoring bodies.
The Ministry of Rural Development has said the rules are aimed at creating the administrative and financial framework needed to implement the new law across states and Union Territories.
The most important part of the draft rules is the transition plan. Ongoing MGNREGA works will continue under the new framework. Existing e-KYC-verified job cards will remain valid until new Gramin Rozgar Guarantee Cards are issued. Workers will also not be denied employment only because their e-KYC is pending.
The government has projected VB-G RAM G as a major shift in rural employment policy. While MGNREGA guarantees 100 days of wage work in a financial year, the new law raises this to 125 days.
As per the Centre, the new bill set to replace MGNREGA will improve rural incomes, provide stronger livelihood support and help create durable village-level assets linking rural employment with overall village development.
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For 2026-27, the Centre has provided Rs 95,692.31 crore as its share for the programme. As per a PTI report, the total outlay is estimated to cross Rs 1.51 lakh crore after including state level contributions.
Concerns around VB-G RAM-G act
Ever since the VB-G RAM-G bill was first brought up in the Indian parliament, it has drawn stringent criticism from the Opposition. Congress leaders have argued that replacing MGNREGA weakens a rights-based employment guarantee and increases the burden on states.
The Opposition has also questioned the provision that allows states to pause work for up to 60 days during peak sowing and harvesting seasons. The government, on its part, has said the full 125-day guarantee will remain intact and the pause is meant to ensure availability of farm labour during the agricultural season.
Key differences between VB-G RAM G and MGNREGA?
The key difference is that VB-G RAM G increases the employment guarantee from 100 days to 125 days. On paper, VB-G RAM G also places more emphasis on asset creation, timely wage payments and planned rural infrastructure works.
The final rules will be important because they will decide how the new law works on the ground — especially on wage payments, job cards, unemployment allowance, grievance redressal and the financial responsibility of states. Some of the key differences have been listed below.
Alternate cost sharing arrangement, tighter payment timelines
A major change under the VB-G Ram G Bill is that states will now share the cost of wages. Under MGNREGA, the central government pays the full wage bill.
The new scheme sets the cost-sharing ratio at 90:10 for Northeastern and Himalayan states and Union Territories like Uttarakhand, Himachal Pradesh, and Jammu & Kashmir. For other states and Union Territories with legislatures, the split will be 60:40. Union Territories without legislatures will continue to have the Centre bear the full cost.
Under MGNREGA, the Centre pays for unskilled worker wages, a portion of material costs, and some administrative expenses, while states cover unemployment allowances, part of material costs, and their own administrative expenses.
The VB-G Ram G Bill introduces “normative allocation” to determine funding for each state. The Centre will set the allocation for every state each year based on objective criteria. Any expenses beyond this allocation must be covered by the state.
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Pause during peak agriculture season
The new Bill allows work under the scheme to be paused during peak agricultural periods to ensure enough labour is available for farming. States will notify a total of 60 days in a year, covering key sowing and harvesting periods, during which scheme work will not be done.
Under the VB-G Ram G Bill, wages will be paid weekly, unlike MGNREGA, which has a limit of up to 15 days for payment.
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