By Global Consultants Review Team
President Droupadi Murmu has given assent to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, marking a major overhaul of India’s rural employment framework. The new law raises the statutory employment guarantee to 125 days per rural household per financial year, strengthening income security and livelihood stability in rural areas.
The Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, and aligns rural employment policy with the national vision of Viksit Bharat @2047. It reimagines employment generation as an integrated development tool, focusing on empowerment, inclusive growth, convergence across schemes and saturation-based delivery of public services.
Under the legislation, rural households with adult members willing to undertake unskilled manual work are entitled to at least 125 days of wage employment annually, an increase from the earlier 100-day guarantee. The government expects the enhanced entitlement to provide stronger protection against seasonal distress and economic shocks.
Decentralised planning remains central to the Act. Gram Sabhas and Panchayats are vested with primary authority to plan and approve works through Viksit Gram Panchayat Plans prepared via participatory processes. These plans will be digitally linked with national platforms such as PM Gati Shakti, enabling inter-departmental convergence while preserving local priorities.
To balance employment generation with agricultural needs, states may notify an aggregated pause period of up to 60 days during peak farming seasons, without reducing the overall 125-day entitlement. The Act also mandates weekly wage payments or settlement within 15 days of work completion, with compensation payable for delays.
Unemployment allowance has been restored as a statutory safeguard where work is not provided on time, reinforcing the enforceability of the employment guarantee. Employment will focus on creating durable assets in areas such as water security, rural infrastructure, livelihoods and climate resilience, all mapped to a national rural infrastructure stack.
Implemented as a centrally sponsored scheme with a 60:40 Centre–State funding pattern, the Act raises administrative expenditure limits to 9 per cent. Enhanced use of technology, alongside stronger social audits by Gram Sabhas, aims to improve transparency, accountability and inclusion in rural employment delivery.
We use cookies to ensure you get the best experience on our website. Read more...