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

May 13, 2026

Grassroots economic activities

DIRECT BENEFIT TRANSFER AND TIMELY WAGE PAYMENTS

The government will keep the Direct Benefit Transfer (DBT) system to ensure transparency and accountability.

Under the new framework:

Wages will go directly into workers’ bank or post office accounts .
Payments must be made weekly or within 15 days after closing the muster roll.
Workers will get delay compensation if payments are not made on time.

To ensure a smooth transition:

Existing e-KYC verified MGNREGA Job Cards will remain valid temporarily .
New Gramin Rozgar Guarantee Cards will be issued gradually after implementation.
Workers can continue to register at Gram Panchayat offices .
No worker will be denied employment due to pending e-KYC verification.
State governments will continue to support e-KYC completion at the local level.

GRAM PANCHAYATS TO BECOME CENTRAL PILLARS

One important feature of the new framework is the stronger role given to Gram Panchayats . The government wants local self-governance institutions to become the driving force behind:

Rural employment planning
Infrastructure development
Livelihood generation
Community participation
Village-level economic growth

This approach will strengthen decentralised governance and improve implementation efficiency.

FAQ (FREQUENTLY ASKED QUESTIONS)

Q1: What is the full name of the new rural employment act?
A: Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. It is also called the VB-G RAM G Act.

Q2: When will MGNREGA be replaced?
A: From 1 July 2026.

Q3: How many days of guaranteed employment does the new act provide?
A: 125 days per financial year for every eligible rural household (up from 100 days).

Q4: What is the budget allocated for rural employment in 2026-27?
A: ₹95,692.31 crore by the Central Government. Total outlay (with states) is expected to cross ₹1.51 lakh crore.

Q5: How will workers receive their wages under the new system?
A: Through Direct Benefit Transfer (DBT) directly into their bank or post office accounts.