The Centre on Monday announced that the Viksit Bharat -- Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, or VB-G RAM G Act, will come into force across the country from July 1, replacing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), even as the Congress attacked the move, alleging that the new law would lead to “extreme centralisation” and weaken rural labourers’ bargaining power.

The government said the new framework would guarantee 125 days of wage employment annually to rural households, up from the existing 100-day provision under MGNREGA, and described the shift as a “historic transition” aligned with the vision of “Viksit Bharat @2047”.

MGNREGA to stand repealed from July 1

According to notifications issued by the Ministry of Rural Development, the VB-G RAM G Act will come into force in all states and Union Territories on July 1, and MGNREGA will stand repealed from the same date.

In a statement, the ministry said the Act seeks to usher in a “future-ready and productivity-oriented rural transformation” while strengthening livelihood security, rural incomes and village-level infrastructure development.

The ministry also assured that the transition would be seamless and without disruption to workers.

"Ongoing works under MGNREGA as on June 30 shall be saved and carried over to the new framework seamlessly," the notification said.

The government said existing e-KYC verified MGNREGA job cards will remain valid until new “Gramin Rozgar Guarantee Cards” are issued. Workers without job cards can continue to register at the gram panchayat level, while pending e-KYC will not be a ground to deny employment.

125 days of guaranteed work, wage compensation provisions retained

Under the new framework, every rural household whose adult members volunteer to undertake unskilled manual work will be entitled to 125 days of guaranteed wage employment in a financial year.

Employment must be provided within the prescribed timeframe, failing which workers will remain eligible for unemployment allowance under the provisions of the Act.

The Centre said wage payments would continue through Direct Benefit Transfer into workers’ bank or post office accounts.

Payments will be made weekly or within 15 days from the closure of the muster roll, failing which workers will be entitled to delay compensation.

Draft rules related to wage payments, grievance redressal, allocation norms, administrative expenditure and transitional provisions are currently being prepared in consultation with states and Union Territories and will soon be published for public consultation, the ministry said.

The government also said that the allocation of Rs 95,692.31 crore for 2026-27 is the highest-ever Budget Estimate allocation for a rural employment programme. Including state contributions, the total programme outlay is expected to exceed Rs 1.51 lakh crore.

Congress attacks Centre over rollout

Reacting to the announcement, Congress general secretary in-charge communications Jairam Ramesh alleged that the constitutional right to work and the right to wages of rural Indian families were being undermined.

"Today’s press release by the Union Ministry of Rural Development on VB-G RAM G adds nothing new to what is already known. It is yet another lazy headline-grabbing exercise by a government that specialises in such exercises. No details have been revealed except to say that they will be released soon," Ramesh said on X.

"If this replacement for MGNREGA is to be implemented from July 1, 2026, then all operational details should have been available by now. Public consultations and discussions with state governments on these details have to be done in a meaningful manner and not just to complete a formality," he said.

"But let there be no doubt. The only guarantee that VB-G RAM G offers is that of extreme centralisation and weakening of the bargaining power of rural labour," Ramesh added.