Historic Rural Employment Overhaul Signed Into Law

President Droupadi Murmu formally approved the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB G RAM G) Bill 2025 on Sunday, enacting a major reform of India's rural employment policy. The new legislation supersedes the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with an updated framework designed to strengthen livelihood security.

Key Provisions of the New Act

The Act guarantees 125 days of wage employment each financial year to rural households where adult members opt for unskilled manual labor, extending the previous 100-day entitlement. It incorporates a consolidated 60-day break period to ensure agricultural labor availability during critical sowing and harvesting seasons.

Wage payments are mandated within a week, or at most fifteen days after work completion, with delay compensation required for late disbursements. Financial responsibility is shared between the central and state governments in a 60:40 ratio, with an estimated total annual outlay of approximately ₹1.51 lakh crore, including state contributions. The central government's share is projected at around ₹95,700 crore.

Focus on Asset Creation and Eligibility

Employment under the scheme is linked to building durable public assets in priority areas such as water security, core rural infrastructure, and livelihood-enhancing projects. Eligibility extends to all Indian citizens aged 18 or above residing in rural areas, with guaranteed job provision within 15 days of application.

The bill was passed by Parliament during the recent Winter session, facing significant opposition criticism primarily focused on the removal of Mahatma Gandhi's name from the landmark scheme.