President Droupadi Murmu gives assent to VB-G RAM G Bill, 2025, set to replace MGNREGA

The Act will be implemented as a centrally sponsored scheme with a cost-sharing pattern of 60:40 between the Centre and States, 90:10 for North Eastern and Himalayan States

President Droupadi Murmu on Sunday gave her assent to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, the Rural Development Ministry said.

The VB-G RAM G Bill, 2025, was passed by Parliament, amid opposition protests. It seeks to replace the existing rural employment law, MGNREGA, and guarantees 125 days of wage employment per rural household per financial year. According to the government, the new scheme aims to establish a rural development framework aligned with the national vision of 'Viksit Bharat 2047'.

The Rural Development Ministry said the move is aimed at strengthening livelihood security, advancing inclusive growth and aligning rural employment policy with the national vision of Viksit Bharat.

According to the Rural Development Ministry, the Act seeks to move rural employment beyond a standalone welfare measure by integrating it with the creation of durable and productive assets. Wage employment under the law will be linked to works related to water security, core rural infrastructure, livelihood-related assets and climate resilience, with all assets aggregated into a national rural infrastructure stack to ensure convergence and saturation-based development.

The Rural Development Ministry said the Act mandates timely wage payments on a weekly basis or within 15 days of completion of work, with compensation payable in case of delays. It also restores unemployment allowance as a meaningful statutory safeguard if work is not provided within the stipulated period.

To balance agricultural needs and labour availability, States have been empowered to notify an aggregated pause period of up to 60 days during peak sowing and harvesting seasons, without affecting the overall 125-day employment guarantee, the Ministry said.

Planning and execution will continue to be decentralised, with all works originating from Viksit Gram Panchayat Plans approved by Gram Sabhas. These plans will be digitally integrated with national platforms such as PM Gati Shakti to improve coordination while retaining local decision-making authority, the Ministry added.

The Act will be implemented as a centrally sponsored scheme with a cost-sharing pattern of 60:40 between the Centre and States, 90:10 for North Eastern and Himalayan States, and full central funding for Union Territories without legislatures. The administrative expenditure ceiling has also been raised from 6 per cent to 9 per cent to strengthen staffing, training and field-level capacity.

Describing the legislation as a decisive reform, the Ministry of Rural Development said the VB-G RAM G Act, 2025 reinforces the right to demand employment, modernises governance and accountability, and positions rural employment as a strategic tool for sustainable livelihoods, resilient assets and long-term rural prosperity.