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Summary
The Centre has released draft rules for the new VB–G RAM G Act ahead of its July rollout. Here’s how the transition from MGNREGA, wage payments and grievance systems may work.
Ahead of finalizing the operational framework for the new rural employment law, the Centre on 23 May released draft rules under the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB–G RAM G) for public consultation.
With the Act scheduled to come into force from 1 July, Mint explains the proposed transition from MGNREGA, the new administrative architecture, payment mechanisms, grievance systems and institutional safeguards that will shape implementation on the ground.
What changes under the new law on wages and unemployment allowance?
The draft Rules specify that wages and unemployment allowance would be paid through Direct Benefit Transfer (DBT), continuing the push towards digital payments and reducing leakages. This could mean faster payments, although implementation would depend on banking access and digital infrastructure at the village level.
The new law will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and increase the guaranteed employment period for rural households from 100 days to 125 days a year.
The Union government has set aside more than ₹95,000 crore in its budget to provide employment under the scheme. States have also made provisions for it in their respective budgets, taking the total allocation to more than ₹1.51 trillion.
What exactly has been put out for consultation?
The government has released seven draft rules for stakeholder comments, including:
- Transitional Provisions Rules
- National Level Steering Committee Rules
- Central Gramin Rozgar Guarantee Council Rules
- Administrative Expenses Rules
- Grievance Redressal Rules
- Manner of Payment of Wages and Unemployment Allowance Rules
- Manner and Procedure of Expenditure incurred by the State in excess of the Normative Allocation and expenses of the scheme for Union Territories without legislature Rules
Together, these Rules are meant to create the institutional and financial framework for implementing the Act.
How will the transition from MGNREGA work?
A key concern around the new law is continuity for workers and ongoing projects. The Transitional Provisions Rules seek to address this by laying out a roadmap for a smooth shift from MGNREGA to the VB–G RAM G framework.
The draft provides for continuation of ongoing works, settlement of liabilities, validity of e-KYC verified job cards, transfer of records and continuation of worker rights during the transition. The government says worker entitlements will continue uninterrupted.
Experts, however, flagged concerns around implementation.
“Owing to public pressure, for the first time, public consultation on this Act is sought. However, the draft places excessive emphasis on digital infrastructure and introduces many complicated conditionalities. The approach should instead prioritise on how allocations and execution can be carried out effectively on the ground,” said Rajendran Narayanan, associate professor at Azim Premji University.
Which new institutions are being proposed?
At the core of the framework are two proposed bodies — the National Level Steering Committee (NLSC) and the Central Gramin Rozgar Guarantee Council (CGRGC).
The National Level Steering Committee will provide strategic oversight for implementation of the Act. It will advise on normative allocations, convergence, monitoring frameworks, technology-enabled governance systems and policy coordination.
As per the draft Rules, the NLSC will comprise representatives from the Department of Rural Development, NITI Aayog, key ministries and departments of the central government, state governments and technical institutions.
The CGRGC, meanwhile, will perform advisory and monitoring functions relating to evaluation, implementation support, accountability and reporting under the VB–G RAM G Act, 2025.
Together, the two bodies are intended to strengthen institutional oversight, policy coordination, monitoring, convergence and participatory governance under the new framework.
How do the rules strengthen grievance redressal?
One of the major governance changes proposed is a multi-tier, time-bound grievance redressal system.
The Grievance Redressal Rules establish a system supported by digital public infrastructure and provide for grievance registration, tracking, escalation, appeals and mandatory timelines for disposal.
The proposal aims to bring greater accountability and faster resolution of complaints under the rural jobs programme.
About the Author
Vijay C Roy
Vijay C. Roy is a journalist with over 21 years of experience covering various news beats across different organisations such as Business Standard and The Tribune. In the past, he has covered beats such as finance, auto, MSME, commodities, FMCG, pharmaceutical, agriculture, IT/ITES, infrastructure and start-ups. He joined Mint in February 2025, and covers agriculture, food processing, fertilizers, environment and climate change, bringing over two decades of experience reporting on farm policy, food inflation, crop trade, and rural livelihoods.<br><br>Vijay’s areas of reporting include food security and climate change policies, focusing on their impact on different stakeholders and their implications. His expertise lies in simplifying complex agri-economic issues such as edible oil import dependence, cotton and wheat trends, fertiliser subsidies, and climate-related risks. He has covered key developments including global supply disruptions and evolving trade policies, offering both macroeconomic perspective and field-level context. Known for his credible and balanced reporting, he follows a rigorous, fact-based approach that prioritises accuracy and context. He is driven by a commitment to public interest, aiming to make critical agricultural and economic issues accessible while contributing to informed policy and industry discussions.
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