The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, or VB-G RAM G Act, came into force across rural India on 1 July 2026. It replaced the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA), which had provided a statutory guarantee of wage employment in rural areas.
📜 Statutory Wage Employment Guarantee
The VB-G RAM G Act strengthens the rural employment guarantee framework under a central law passed by Parliament.
- Raises guaranteed wage employment for eligible rural households from 100 days to 125 days in a financial year.
- Continues the legal framework of rural employment guarantee.
- Replaces MGNREGA (2005), which guaranteed 100 days of wage employment.
💰 Wage Rates & Funding Pattern
The Ministry of Rural Development notified revised wage rates on 30 June 2026.
- National average daily wage rose from ₹298.8 (MGNREGA) to ₹327.4 (VB-G RAM G), an average rise of ₹28.6/day.
- An interim wage floor of ₹300 per day applies from 1 July 2026; no notified wage can fall below this.
- Interim allocation of ₹95,692.31 crore for transition support and wage payments.
- Funding pattern: 60:40 (Centre:States) for most states.
- North-Eastern and Himalayan states get 90:10 support.
🪪 Implementation, Job Cards & Transition
The transition to the new system is being carried out in phases while protecting existing beneficiaries.
- Existing e-KYC-verified MGNREGA job cards remain valid until new Gramin Rozgar Guarantee Cards are issued.
- Data transfer expected to take six months, until 31 December 2026.
- About two dozen states/UTs had issued required notifications by 30 June 2026.
- 29 states/UTs had made budgetary provisions.
📌 Key Points (Important Facts for Exams)
- The VB-G RAM G Act, 2025 came into force on 1 July 2026, replacing MGNREGA.
- It raises the guarantee from 100 days to 125 days of wage employment.
- National average daily wage rose to ₹327.4, with a ₹300/day interim wage floor.
- MGNREGA was enacted in 2005 guaranteeing 100 days of wage employment.
- Funding is 60:40 (Centre:States); 90:10 for NE and Himalayan states.
- e-KYC-verified job cards stay valid until new Gramin Rozgar Guarantee Cards are issued.
🎯 Conclusion
The VB-G RAM G Act, 2025 marks a major reform of India's rural employment guarantee, expanding the wage-employment guarantee and revising wage rates while ensuring a smooth transition from MGNREGA. This is an important Government Schemes and Indian Economy current affairs topic for SSC, Banking, Railway, UPSC and state-level examinations.
📝 Practice MCQs
Q1. Which Act came into force on 1 July 2026, replacing MGNREGA?
👉 SHOW ANSWER ▼
✔ Correct Answer: (b) VB-G RAM G Act, 2025
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 replaced MGNREGA.
Q2. What does the VB-G RAM G Act guarantee in terms of wage employment days?
👉 SHOW ANSWER ▼
✔ Correct Answer: (c) 125 days
It raises the guarantee from 100 days to 125 days per financial year.
Q3. MGNREGA, which was replaced, was enacted in which year?
👉 SHOW ANSWER ▼
✔ Correct Answer: (b) 2005
MGNREGA was enacted in 2005 guaranteeing 100 days of wage employment.
Q4. What is the interim wage floor per day under the new Act from 1 July 2026?
👉 SHOW ANSWER ▼
✔ Correct Answer: (c) ₹300
An interim wage floor of ₹300 per day applies; no notified wage can fall below it.
Q5. The national average daily wage under VB-G RAM G was notified as?
👉 SHOW ANSWER ▼
✔ Correct Answer: (c) ₹327.4
The average daily wage rose from ₹298.8 to ₹327.4.
Q6. What is the Centre-State funding ratio for most states under the new Act?
👉 SHOW ANSWER ▼
✔ Correct Answer: (b) 60:40
Most states follow a 60:40 Centre-State funding pattern.
Q7. North-Eastern and Himalayan states receive which funding ratio?
👉 SHOW ANSWER ▼
✔ Correct Answer: (d) 90:10
NE and Himalayan states receive 90:10 Centre-State support.
Q8. Existing MGNREGA job cards remain valid until what is issued?
👉 SHOW ANSWER ▼
✔ Correct Answer: (b) Gramin Rozgar Guarantee Cards
e-KYC-verified job cards stay valid until new Gramin Rozgar Guarantee Cards are issued.
Q9. Until which date is the data transfer to the new system expected to continue?
👉 SHOW ANSWER ▼
✔ Correct Answer: (b) 31 December 2026
Data transfer is expected to take six months, until 31 December 2026.
Q10. Which ministry notified the revised wage rates on 30 June 2026?
👉 SHOW ANSWER ▼
✔ Correct Answer: (b) Ministry of Rural Development
The Ministry of Rural Development notified the revised wage rates.
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