MGNREGA to End on 1 July 2026 – New VB-G RAM G Act Offers 125 Days of Work

May 13, 2026

OVERVIEW

From 1 July 2026, India will replace the old MGNREGA with a new rural employment law. It is called the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, or VB-G RAM G Act. The new act gives 125 days of guaranteed wage employment to every eligible rural household. This is 25 days more than the earlier 100 days. The government has set a record budget of ₹95,692.31 crore for 2026-27. Gram Panchayats will play a bigger role. Wages will be paid through Direct Benefit Transfer.

NEW ACT TO COME INTO FORCE FROM 1 JULY 2026

The Government of India has announced a major change for rural jobs. The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 – also called the VB-G RAM G Act – will come into force from 1 July 2026 . This new law aims to provide livelihood security, improve rural infrastructure, and increase employment opportunities in villages across the country.

MGNREGA TO BE REPLACED FROM 1 JULY 2026

The Ministry of Rural Development has officially notified that the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 will stand repealed from 1 July 2026 . This is one of the biggest changes in rural governance and employment structure in recent decades.

The government says this is a shift towards a more integrated, productivity-driven, and future-ready rural economy.

Good news: All ongoing MGNREGA works will continue without any interruption. They will smoothly shift into the new framework.

WHAT IS THE VIKSIT BHARAT G RAM G ACT?

The VB-G RAM G Act is a new statutory rural employment programme. It is designed to strengthen employment generation and livelihood security in villages.

Under the new law:

Every eligible rural household will get a legal guarantee of 125 days of wage employment every financial year (up from 100 days under MGNREGA).
Employment will be given to adults who are willing to do unskilled manual work.
Workers will continue to receive unemployment allowance if jobs are not provided within the prescribed time.

RECORD BUDGET ALLOCATION FOR RURAL EMPLOYMENT

The Central Government has made a historic budget allocation of ₹95,692.31 crore for the financial year 2026-27.

Key points:

This is the highest-ever Budget Estimate allocation for any rural employment programme.
Including state contributions, the total programme outlay is expected to cross ₹1.51 lakh crore .