The union government on Monday announced the implementation of the Viksit Bharat – Guarantee Mission for Employment and Livelihood (Gramin) or VB-G RAM G Act of 2025, paving the way for a revamped rural employment program to be rolled out across the country from January 1.
The new law will replace Mahatma Gandhi’s National Rural Employment Guarantee Act (MGNREGA) and increase the guaranteed period of employment for rural households from 100 days to 125 days a year, the Ministry of Rural Development said in a statement.
Parliament passed the VB-GRAM G Bill 2025 on 19 December 2025, with President Droupadi Murmu giving his assent just two days later. The move signals a decisive overhaul of India’s rural employment and development framework.
Transition period
Union Agriculture and Rural Development Minister Shivraj Singh Chouhan announced during a media interaction in Bhopal that from July 1, laborers seeking employment in rural areas will get 125 days of guaranteed employment per year.
He added that in the interim, the ongoing work under MGNREGA may continue as per the provisions of the Act VB-G RAM G Act. These works will be seamlessly migrated and prioritized for completion to ensure the public asset is not left incomplete and community benefits continue, he said.
Chouhan also said that while the rules for the new law are being finalized in consultation with the state governments, the ministry’s main objective is to avoid any disruption of work for workers during the transition. He added that all necessary administrative measures had been taken to ensure continuous employment.
He noted that the states were given six months to complete the necessary preparations for the mission. He also clarified that in case of any state that fails to meet the July 1 deadline, all subsequent projects will be automatically funded and managed under the new VB-GRAM G framework.
₹Spending 1.51 trillion
The union government allocated more than ₹95,000 crore in its budget for providing jobs under the scheme. Chouhan said states have also made provision for this in their budgets, bringing the total budget over the line ₹1.51 trillion. He said administrative costs have been increased from 6% to 9% to ensure adequate and timely payment of salaries.
Salary payments will be paid directly to employees’ bank or postal accounts via direct transfer of benefits (DBT), said the minister. While the government aims to process payments within three days, the entire transaction must be completed within a maximum of 15 days. If the payment exceeds this 15-day limit, the workers will be entitled to compensation, he added.
Chouhan said the mission will prioritize four key development areas:
