The Centre notified rules under the VB-G RAM G Act, outlining the transition from MGNREGS, wage and unemployment allowance payments through DBT, and expenditure norms. The new rural employment framework officially replaces MGNREGS from July 1 across the country
Published Date – 2 July 2026, 08:59 PM
New Delhi: The Centre has notified three sets of rules under the VB-G RAM G Act, laying down the framework for the transition from MGNREGS, payment of wages and unemployment allowance, and expenditure beyond the Centre’s normative allocation, government sources said.
The rules, notified by the Ministry of Rural Development through separate Gazette notifications dated July 1, came into force from the date of their publication. The draft rules were issued in May and the government had invited feedback on them.
The Transitional Provisions Rules provide for an orderly migration from the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the new employment guarantee framework — Viksit Bharat -“Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025.
They require state governments to verify all liabilities under MGNREGS existing up to June 30, settle admissible dues and submit audited utilisation certificates within 180 days, extendable by another 90 days by the Centre for recorded reasons.
The Centre will continue fund support for liabilities existing up to June 30, while allowing interim allocations to states until the final rules governing normative allocation are framed.
The rules also provide that the ongoing MGNREGS works will continue under the new Act, while e-KYC-verified MGNREGS job cards will remain valid until states issue new Gramin Rozgar Guarantee Cards. Existing employment records, physical and digital records and assets created under MGNREGS will also be transferred and preserved during the transition.
A second notification prescribes the manner of payment of wages and unemployment allowance under the VB-G RAM G Act. It mandates that all wage and unemployment allowance payments be made only through Direct Benefit Transfer (DBT) into beneficiaries’ bank or post office accounts, prohibits cash payments except under extraordinary circumstances permitted by the Centre, and requires all payments to be processed electronically through the scheme’s Management Information System (MIS) or another notified digital platform.
Payments are also to be routed through the Aadhaar Payment Bridge System or other approved authentication mechanisms to ensure efficiency and transparency.
The third notification lays down the procedure for expenditure beyond the Centre’s state-wise normative allocation and for funding Union territories without legislatures.
It provides that the Centre will bear the entire expenditure of the scheme in Union territories without legislatures, while expenditure by states beyond the approved normative allocation must be captured through the designated MIS. The rules require component-wise and source-wise reporting to distinguish expenditure financed by the Centre from that borne by state governments, with all such data forming part of the scheme’s audit and financial management records.
The notifications operationalise key provisions of the VB-G RAM G Act, which came into force across the country on July 1, replacing the MGNREGS framework with a new rural employment and livelihood guarantee regime.
Union Agriculture Minister Shivraj Singh Chouhan and Chief Minister N Chandrababu Naidu formally rolled out the Act in Tirupati district of Andhra Pradesh on Thursday.
