Overview
India is launching a new rural employment framework on July 1, 2026, replacing MGNREGA. The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, increases guaranteed employment from 100 to 125 days per rural household annually. An interim list of 318 permissible works has been notified across four thematic areas.
A New Chapter for Rural Employment
India's rural employment landscape is changing. On July 1, 2026, a new framework will come into effect. It replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which has been in place since 2005.
The new system is called the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. This is the statutory basis for the new rural employment system. The government notified an interim list of 318 permissible works on June 24, 2026.
The new framework represents a significant shift in how rural employment is managed. It brings more works, better planning, and a longer guarantee period. It also introduces a convergence approach with multiple ministries.
What Is the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025?
This Act is the legal framework for the new rural employment system. It was passed to replace the MGNREGA. The Act provides an annual employment guarantee of 125 days per rural household. This is an increase from the 100 days provided under MGNREGA.
The Act is part of India's broader Viksit Bharat vision. It aims to create a developed India by 2047. The rural employment mission is a key component of this vision.
The Act also introduces a new planning structure. The Viksit Gram Panchayat Plan serves as the primary planning instrument. This brings planning closer to the grassroots level.
The Interim List of 318 Permissible Works
The government has notified an interim list of 318 permissible works. This list was shared with states and other ministries on June 24, 2026. The government has sought views for additions based on local requirements.
The works are grouped under four thematic areas.
1. Water Security
This includes works related to water conservation and management. These may include rainwater harvesting, pond restoration, and watershed development.
2. Core Rural Infrastructure
This includes works like road construction, bridge building, and other essential infrastructure. These works improve connectivity and access in rural areas.
3. Rural Livelihoods
This includes works that support rural livelihoods. These may include activities related to agriculture, animal husbandry, and small-scale enterprises.
4. Special Works for Mitigation of Extreme Weather Events
This is a new and important category. It includes works that help rural communities cope with extreme weather. These may include flood control, drought mitigation, and cyclone preparedness.
The list is interim. More works may be added based on feedback from states and local bodies.
Planning Structure: Single Plan – Multi Funding
The new framework uses a "single plan – multi funding" approach. This is a significant change from the earlier system.
The Viksit Gram Panchayat Plan is the primary planning instrument. This plan is prepared at the Gram Panchayat level. It integrates all development works and funding sources.
This approach has several benefits. It ensures better coordination between different schemes. It reduces duplication of efforts. It also makes planning more localised and participatory.
The plan covers all sectors and all funding sources. It includes funds from the new rural employment mission, other central schemes, and state schemes.
Consultation and Administrative Process
The Ministry of Rural Development has been actively engaging with stakeholders. A high-level inter-ministerial consultation was held on June 24 and 25, 2026. It was chaired by Rural Development Secretary Rohit Kansal.
Representatives from 18 ministries and departments took part in the consultation. They discussed the draft convergence framework. This is important because the new system involves multiple ministries.
The government also announced the deployment of over 100 area officers across the country on June 19, 2026. These officers will provide transition support. They will help states and districts adapt to the new system.
State-Level and Union Territory-Level Changes
Different states and Union Territories are responding to the new framework.
Karnataka's Concerns
Karnataka raised concerns on June 24, 2026. The state is concerned about the revised funding pattern. The Centre-State sharing ratio has changed from 90:10 to 60:40. This means states will have to contribute more funds.
Jammu and Kashmir's Notification
Jammu and Kashmir notified its own scheme on June 24, 2026. It is called the Jammu Kashmir Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Scheme, 2026. This will replace MGNREGA in the Union Territory from July 1, 2026.
Key Differences from MGNREGA
The new framework has several key differences from MGNREGA.
| Feature |
MGNREGA |
New Framework |
| Employment Guarantee |
100 days per household |
125 days per household |
| Legal Basis |
MGNREGA Act, 2005 |
Viksit Bharat Act, 2025 |
| Planning |
Village-level plan |
Viksit Gram Panchayat Plan |
| Funding Pattern |
90:10 (Centre:State) |
60:40 (Centre:State) |
| Works |
Limited list |
318 works across 4 themes |
| Convergence |
Limited |
Multi-ministry convergence |
These changes are designed to make rural employment more effective and impactful.
Benefits of the New Framework
The new framework offers several benefits.
More Employment Days: The increase from 100 to 125 days provides more work opportunities for rural households.
More Diverse Works: The 318 works cover a wider range of activities. This addresses more rural needs.
Better Planning: The Viksit Gram Panchayat Plan brings planning closer to the people.
Climate Resilience: The special works for extreme weather events help communities adapt to climate change.
Convergence: The multi-ministry approach ensures better coordination and resource utilisation.
Challenges Ahead
The new framework also faces challenges.
Funding: The change from 90:10 to 60:40 puts more burden on states. Some states may struggle to meet their share.
Implementation: Transitioning from MGNREGA to the new system will require careful management. Training and capacity building will be needed.
Coordination: The convergence approach requires strong coordination between ministries. This can be challenging.
Local Needs: The interim list of 318 works may need to be expanded. States have asked for additions based on local requirements.
Frequently Asked Questions (FAQ)
1. What replaces MGNREGA from July 1, 2026?
MGNREGA is replaced by the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025.
2. How many days of employment are guaranteed under the new framework?
The new framework guarantees 125 days of employment per rural household annually, compared to 100 days under MGNREGA.
3. What is the Viksit Gram Panchayat Plan?
It is the primary planning instrument under the new framework. It is prepared at the Gram Panchayat level and integrates all development works and funding sources.
4. How many permissible works are in the interim list?
The interim list contains 318 permissible works grouped under four thematic areas: water security, core rural infrastructure, rural livelihoods, and special works for mitigation of extreme weather events.
5. What is the new funding pattern?
The Centre-State sharing ratio has changed from 90:10 under MGNREGA to 60:40 under the new framework.
Exam-Focused Quick Points