India's Rural Employment Law Gets a Major Overhaul: 125 Days of Work Guaranteed

The VB-GRAMG Act guarantees every eligible rural household up to 125 days of paid unskilled manual work in a financial year — an increase of 25 days over MGNREGA| India News

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The central government has notified the implementation of the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), 2025, replacing the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from July 1, 2026.

The new framework guarantees every eligible rural household up to 125 days of paid unskilled manual work in a financial year, an increase of 25 days over MGNREGA.

The way funds are allocated also changes, with the Central government determining a state-wise normative allocation, a fixed spending ceiling, for each financial year.

Cost-sharing follows a 60:40 formula between the Centre and states, with higher central support for northeastern and Himalayan states and full funding for Union Territories without legislatures.

The total annual outlay is estimated at approximately ₹1.51 lakh crore, including state contributions, with the Centre's share projected at roughly ₹95,700 crore.

The new law also introduces stronger accountability mechanisms, including social audits at least twice a year, supported by real-time dashboards, GPS-based monitoring and digital attendance systems.