President Assents To Viksit Bharat–G RAM G Act, Rural Employment Guarantee Raised To 125 Days
In a major reform aimed at strengthening rural livelihoods, President Draupadi Murmu has given assent to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, enhancing the statutory rural employment guarantee to 125 days per household per financial year.
The legislation replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, introducing a modernised statutory framework aligned with the national vision of Viksit Bharat @2047. The Act seeks to transform rural employment into an integrated development instrument focused on empowerment, inclusive growth, convergence and saturation-based delivery.
Under the new law, rural households whose adult members volunteer for unskilled manual work will be entitled to not less than 125 days of wage employment annually. This marks a significant increase from the earlier 100-day guarantee, aimed at improving income security and livelihood stability in rural areas.
The Act reinforces decentralised governance by placing planning authority with Gram Sabhas and Panchayats. All works will originate from Viksit Gram Panchayat Plans prepared through participatory processes and approved at the village level. These plans will be digitally integrated with national platforms such as PM Gati Shakti, enabling convergence across departments while retaining local decision-making.
To ensure availability of farm labour during peak agricultural seasons, States have been empowered to notify an aggregated pause period of up to 60 days in a financial year, without affecting the overall 125-day employment entitlement.
The Act mandates weekly wage payments or payment within 15 days of work completion. In case of delays, workers will be entitled to compensation. It also restores unemployment allowance as a statutory safeguard where employment is not provided within the prescribed time.
Employment under the Act is linked to the creation of durable rural assets across priority sectors, including water security, core rural infrastructure, livelihood-related works and climate resilience. All assets will be mapped into a national rural infrastructure stack to avoid duplication and ensure outcome-based planning.
Implemented as a centrally sponsored scheme, the Act follows a 60:40 Centre–State funding pattern, with special provisions for northeastern and Himalayan states and full central funding for Union Territories without legislatures. Administrative expenditure limits have been raised to 9 per cent to strengthen institutional capacity and service delivery.
Technology-enabled tools such as biometric authentication, geo-tagging and real-time dashboards have been introduced to enhance transparency. At the same time, the role of social audits by Gram Sabhas has been strengthened to ensure accountability and inclusion.
The government clarified that the shift to normative allocations relates only to budgeting and does not dilute the statutory right to employment. The Act places a clear obligation on authorities to provide work or unemployment allowance, reinforcing the enforceability of the employment guarantee.
The Viksit Bharat–G RAM G Act, 2025 represents a decisive step towards renewing India’s rural employment architecture. By expanding guaranteed employment, empowering Panchayats, strengthening accountability and linking work with durable asset creation, the Act repositions rural employment as a key driver of sustainable growth and resilience in Rural Bharat.
