Employment shrinks by 67.6 lakh in first fortnight after switchover to MGNREGS, LibTech finds

The number of active workers—those who worked at least once in the last three years under the program—also fell, from 10.84 million to 10.57 million, a decrease of about 26.3 million workers (2.43%). File | Photo credit: Arun Kulkarni

Within a fortnight of the transition from the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the Viksit Bharat Guarantee for Rozgar and Ajeevika Gramin Mission (VB-G RAM G), the number of registered workers fell from 27 million to 26.33 million, representing a net reduction of 67.6% in total rural employment, accounting for 2.5% of the rural workforce. according to an analysis by LibTech India, a consortium of academics and activists.

The number of active workers—those who worked at least once in the last three years under the program—also fell, from 10.84 million to 10.57 million, a decrease of about 26.3 million workers (2.43%).

On 1 July 2026, the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB G RAM G) 2025 came into force, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.

“dynamic figure”

However, officials of the Ministry of Rural Development disputed the findings, saying that the analysis covered only a short period and did not reflect the ongoing verification, updating and renewal of worker card and job card records by states and union territories. The number of registered and active workers is a dynamic figure and changes as records are updated, officials said. Ministry officials also put the onus on the states, saying they must follow the standard operating procedures prescribed by the Center for any deletion. They added that no complaints have been received regarding denial of employment due to non-completion of e-KYC or Face Authentication and about 84,000 Gramin Rozgar Guarantee Cards covering 1.91 million workers have already been issued under the new law.

According to LibTech India, three states – Bihar and Uttar Pradesh and Telangana – accounted for much of the net decline in registered workers and decline in active workers. In Bihar, 5.98 million workers were removed from the roll, in Uttar Pradesh 8.06 million and Telangana 7.2 million.

The group said that while the transition guidelines stipulate that e-KYC-verified MGNREGA job cards will remain valid and workers should not be denied employment due to pending e-KYC, it was not clear how workers who cannot complete e-KYC or facial recognition verification will be protected from default.

“Official transition guidelines stated that e-KYC-verified MGNREGA job cards would remain valid until new Gramin Rozgar Guarantee Cards were issued, that workers should not be denied employment simply because e-KYC had not yet taken place, and that the facilitation would continue. However, the publicly available framework did not explain in comparably operational detail how workers unable to complete e-KYC or FRS would be quickly identified, how transferred recovery or how the omission would be transferred Venkateswarlu Kuruva Researcher LibTech India.

LibTech described the latest drop as the fourth major cut in recent years to coincide with a digital compliance measure, following Aadhaar-based payments in 2022-23, mandatory e-KYC in 2025 and facial recognition-based attendance verification in 2026.

“The concern here is not opposition to database verification itself, but a recurring operating pattern: each mandatory digital requirement has been followed by a steep decline in workforce numbers, with workers facing technical, connectivity, mobility, documentation or frontline support barriers at greatest risk,” Kuruva said.

The organization noted that publicly available data does not indicate why the workers were removed, whether they were waiting for e-KYC or facial recognition verification, whether a prior notice was issued, whether Gram Sabha verification was done or whether an appeal mechanism was in place. It also does not reveal the gender, age or caste profile of the affected.

A senior official of the Ministry of Rural Development said that since the VB-G RAM G became operational, 76.71 lakh workers who demanded employment have been given jobs.

Published – 15 Jul 2026 20:04 IST