VB-G Ram G replaces MGNREGA: What the new framework entails
What's the story
The Indian government has introduced the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) VB-G Ram G Bill, 2025. The new legislation seeks to enhance the rural job guarantee scheme by increasing the number of guaranteed wage employment days from 100 to 125 per financial year. The bill will replace the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.
Seasonal break
Employment guarantee pause during peak agricultural seasons
The VB-G Ram G Bill also introduces a first-of-its-kind provision to pause the employment guarantee. It proposes a total period of 60 days in a financial year, covering peak agricultural seasons of sowing and harvesting, during which no work would be undertaken. This is aimed at ensuring adequate availability of agricultural labor during these critical periods.
Financial responsibility
Funding burden shift to states
One of the major changes introduced by the VB-G Ram G Bill is in terms of funding. Unlike the MGNREGA, where the central government bears the entire wage bill, states will now share this burden under the new scheme. The fund-sharing pattern between center and state governments has been defined as 90:10 for Northeastern and Himalayan states as well as Union Territories (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and 60:40 for all other states/UTs with legislature.
Budget change
Normative allocation replaces labor budget
The VB-G Ram G Bill also replaces the existing provision in the Labor Budget under MGNREGA with a 'normative allocation.' This is defined as "the allocation of fund made by Central Government to State." The central government will determine state-wise normative allocation for each financial year based on objective parameters. Any expenditure incurred by a state exceeding its normative allocation will be borne by that state government.
Wage disbursement
Weekly wage payment under new scheme
The VB-G Ram G Bill also proposes weekly wage payments to workers, unlike the 15-day limit under MGNREGA. "The disbursement of daily wages shall be made on a weekly basis or in any case not later than a fortnight after the date on which such work was done," it states. The new scheme retains the provision for payment compensation for delay in wage payments as well. Under the new scheme, the wages will be the same as notified in MGNREGA.