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VB-GRAMG Act replaces MGNREGA; nationwide rollout starts July 1, 2026
India's central government notified the VB-GRAMG Act, replacing MGNREGA, with 125 days of guaranteed unskilled work per rural household and a new funding framework. The law centralizes funding norms, sets cost-sharing rules, and introduces new worker cards; implementation begins with a nationwide rollout on July 1, 2026. Existing MGNREGA Job Cards remain valid only for workers who have completed e-KYC until new Gramin Rozgar Guarantee Cards are issued.
Why It Matters
The shift represents a major reform of rural employment policy, centralizing funding decisions and changing the guarantees and administration of rural work programs, with potential impacts on workers and state budgets.
Timeline
7 Events
Notification details and scheduling of effect
May 12, 2026
The notification clarified that existing MGNREGA Job Cards will remain valid until new Gramin Rozgar Guarantee Cards are issued, but only for workers who have completed e-KYC. Union rural development minister Shivraj Singh Chouhan said the law guarantees 125 days of work with wages paid directly to bank accounts within 15 days and compensation for delays. States have six months to prepare; those not ready by July 1 will still be governed by VB-GRAMG funding rules from that date. The law specifies a 60:40 Centre-state funding split (90:10 for northeastern and Himalayan states) with full central funding for UTs without legislatures, and an estimated total annual outlay of ₹1.51 lakh crore (Centre share ~₹95,700 crore).
VB-GRAMG notified for implementation
May 11, 2026
The ministry of rural development notified the implementation of VB-GRAMG, 2025, replacing MGNREGA. The new law will take effect nationwide from July 1.
Presidential assent to VB-GRAMG
December 21, 2025
The VB-GRAMG Bill received presidential assent on December 21, 2025.
VB-GRAMG cleared by Rajya Sabha
December 19, 2025
The Rajya Sabha cleared VB-GRAMG shortly after midnight on December 19, 2025.
VB-GRAMG passed by Lok Sabha
December 18, 2025
The Lok Sabha passed the VB-GRAMG bill on December 18, 2025.
VB-GRAMG introduced in Lok Sabha
December 16, 2025
The Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), VB-GRAMG, was introduced in the Lok Sabha on December 16, 2025.
MGNREGA enacted
2005
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted in 2005, guaranteeing 100 days of wage employment per rural household per year. Under that law, states submitted annual work plans based on demand and the Centre was obliged to release funds accordingly.