May 11, 2026

New Employment Law Set to Replace MGNREGA: Viksit Bharat Guarantee Act Commences July 1

New Employment Law Set to Replace MGNREGA: Viksit Bharat Guarantee Act Commences July 1

The Union government has announced a significant shift in rural employment policy, unveiling that the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G) Act will take effect on July 1. This new legislation will replace the long-standing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which will be officially repealed on the same day.

With the release of two gazette notifications by the Ministry of Rural Development, officials have underscored that the transition to the new framework is designed to be smooth and without disruption for the workforce involved. According to a press release from the ministry, all ongoing projects under MGNREGA as of June 30 will continue under the umbrella of the VB-G RAM G Act, ensuring that existing employment commitments are honored.

As part of this transition, current e-KYC verified MGNREGA job cards will remain valid until new Gramin Rozgar Guarantee Cards are issued. This provision aims to maintain continuity for rural workers as the government moves forward with its new employment guarantee framework. Importantly, those workers who do not possess job cards will still have the opportunity to register at their local gram panchayat, thereby ensuring that no one is left without employment opportunities due to pending e-KYC processes.

The Ministry has also reassured that the facilitation for completing e-KYC procedures will continue to be available at the ground level, supported by state governments. This developmental stride comes in the wake of the VB-G RAM G Act receiving presidential assent on December 21, shortly after being passed by Parliament amid considerable opposition protests, highlighting the contentious nature of this legislative change.

MGNREGA, introduced in 2005 by the Congress-led United Progressive Alliance, was a landmark initiative that guaranteed 100 days of unskilled work to rural households, significantly transforming the landscape of rural employment in India. Its repeal marks a noteworthy departure from strategies employed over the last two decades, as the government seeks to implement a revised approach aimed at enhancing rural livelihoods and augmenting economic resilience.

Kavya Reddy

District Reporter

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