India’s Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, took effect from July 1, 2026, replacing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, with a guaranteed floor wage of ₹300 per day for rural workers across India.
The Central government notified the new wage floor under the Act on June 30, 2026, effective July 1, with the notification published by the Ministry of Rural Development. The Viksit Bharat Rozgar Act retains the guarantee of employment while significantly revising the wage structure, administrative framework, and livelihood linkages for rural households across all states and Union Territories.
How Does the Viksit Bharat Rozgar Act Differ From MGNREGA?
The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act replaces MGNREGA’s variable state-wise wage rates with a uniform national floor of ₹300 per day, addressing longstanding complaints that MGNREGA wages in several states had fallen below the actual cost of living. Under MGNREGA, wage rates varied from approximately ₹228 per day in some states to ₹374 per day in others as of 2025-26. The new Act standardises the minimum at ₹300 nationwide. Additionally, the Viksit Bharat Rozgar Act integrates livelihood components — skilling, micro-enterprise linkages and market access — into the employment guarantee framework, a departure from MGNREGA’s purely work-based model.
Which States and Workers Are Covered Under the New Act?
The Viksit Bharat Rozgar Act applies to all rural households across India’s 28 states and 8 Union Territories. Approximately 150 million households registered under MGNREGA are expected to be covered under the new scheme. The Act guarantees a minimum of 100 days of employment per household per year at the ₹300/day floor wage, with states empowered to offer higher wages from their own funds. Aadhaar-based attendance and digital wage disbursement are mandatory under the new framework, aimed at reducing payment delays and leakages.
Market and Economic Reaction
Economists from NITI Aayog and the International Labour Organization have broadly welcomed the Viksit Bharat Rozgar Act’s higher wage floor, projecting that rural consumption could rise by ₹15,000–₹20,000 crore annually if disbursement efficiency improves. Industry bodies including CII and FICCI noted the move aligns with the Viksit Bharat 2047 vision of eliminating rural poverty. However, some state governments have expressed concern over the financial burden, as states share 25% of wage costs under the Act.
What Happens Next?
State governments have until September 30, 2026, to update their implementation plans and migrate existing MGNREGA job cards to the new system. The Ministry of Rural Development will conduct a mid-year review in October 2026 to assess wage disbursement and targeting efficiency. A full performance audit is scheduled for March 2027, with wage revision recommended every two years based on the Consumer Price Index for Agricultural Labourers.
Frequently Asked Questions
What is the Viksit Bharat Rozgar Act, 2025?
The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, is India’s new rural employment guarantee law that replaced MGNREGA from July 1, 2026. It guarantees 100 days of work per household per year at a minimum ₹300 per day wage floor, with additional livelihood development components not present in MGNREGA.
Is MGNREGA completely replaced or merged?
MGNREGA has been fully superseded by the Viksit Bharat Rozgar Act from July 1, 2026. Existing job cards, worker registrations and ongoing works under MGNREGA are being migrated to the new Act’s framework by September 2026. No fresh MGNREGA registrations are being accepted after July 1, 2026.
Will workers get ₹300 per day even if state MGNREGA wages were higher?
Yes, ₹300 per day is the national floor — the minimum guaranteed wage. States where MGNREGA wages already exceeded ₹300 per day, such as Haryana (₹374) and Kerala (₹349), are permitted to continue paying higher rates from state funds under the new Act.
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