Centre releases draft rules to replace MGNREGA with new rural job scheme

The Centre has released draft rules for the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), which will replace MGNREGA from July 1. The framework raises guaranteed rural work to 125 days and introduces new governance, grievance and funding mechanisms

New Delhi: The Centre on Saturday notified draft rules under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G), laying down the institutional and administrative framework for rollout of the new rural employment programme that will replace MGNREGA from July 1, while inviting public feedback before finalisation.

Framed under Section 33 and other relevant provisions of the Act, the draft rules have been placed in the public domain to facilitate wider consultation with states, institutions, experts, worker groups, civil society organisations and the public, officials said.

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The proposed rules cover transitional provisions, the National Level Steering Committee, the Central Gramin Rozgar Guarantee Council, administrative expenses, grievance redressal, payment of wages and unemployment allowance, and expenditure incurred beyond normative allocations, including for Union Territories without legislatures.

Officials in the Ministry of Rural Development said the rules are aimed at establishing the institutional, financial and governance framework for implementation of the Act across the country and ensuring participatory consultation before the rules are finalised.

The draft Transitional Provisions Rules spell out the framework for shifting from MGNREGA to VB-G RAM G, which was notified on May 11 and is scheduled to come into force across states and Union Territories from July 1.

The rules provide for continuation of ongoing works, settlement of liabilities, transfer of records and continuation of worker rights during the transition period. Existing e-KYC-verified MGNREGA job cards will remain temporarily valid until new Gramin Rozgar Guarantee Cards are issued, while fresh works may also be opened if ongoing projects are insufficient to meet labour demand.

The VB-G RAM G Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act with what the government describes as a “next-generation rural development framework” aligned with the Viksit Bharat 2047 vision.

The new law raises the annual employment guarantee from 100 to 125 days and links rural employment more closely with infrastructure creation, climate resilience and village-level planning through Viksit Gram Panchayat Plans.

The proposed framework also envisages new oversight mechanisms. A National Level Steering Committee will provide strategic guidance on implementation, including normative allocations, convergence, monitoring systems and technology-enabled governance.

According to the draft rules, the committee will include representatives from the Department of Rural Development, NITI Aayog, central ministries, state governments and technical institutions.

The Central Gramin Rozgar Guarantee Council has also been proposed to support implementation, evaluation, monitoring and reporting under the Act, with the ministry saying the two bodies are intended to strengthen policy coordination, institutional oversight and participatory governance.

The draft Grievance Redressal Rules seek to establish a technology-enabled, multi-tier and time-bound system supported by digital public infrastructure, with provisions for registration, tracking, escalation and appeals.

Administrative expense rules specify expenditure to be borne by the Centre, shared with states or borne by states, including spending on staffing, training, ICT systems, monitoring, grievance redressal, and social audits.

The draft rules also retain direct benefit transfer as the mode for payment of wages and unemployment allowance, while employment must continue to be provided within 15 days of demand, failing which workers will be eligible for unemployment allowance.

The ministry said objections and suggestions on the draft rules may be submitted till June 21, 2026, and all relevant feedback received during the consultation process will be considered before finalisation. The draft rules are available on the e-Gazette portal.