India’s new rural employment and development law, the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, will come into force nationwide from July 1, the government has said.
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The legislation will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which has governed rural job guarantees since 2006, marking a complete overhaul of India’s flagship rural employment framework.
The Bill was passed by Parliament on December 18, 2025, receiving same-day approval in both Houses. However, the process drew criticism from some quarters over what was described as a “rushed approach”.
Under the new Act, rural households will be entitled to a statutory guarantee of 125 days of unskilled wage employment per financial year, up from 100 days under the existing system. Employment is required to be provided within 15 days of demand, failing which eligible households will receive an unemployment allowance.
The allowance will be financed by state governments, increasing their...
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