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India Sets July 1 Rollout for New Rural Jobs Law Replacing MGNREGA

The overhaul shifts more costs to states through a new 60:40 funding model.

Overview

  • India’s rural development ministry, which issued gazette notifications Monday, set July 1, 2026 for the VB–G RAM G law to take effect and for MGNREGA to be repealed, with ongoing works and e‑KYC‑verified job cards carried over.
  • The new law guarantees up to 125 days of paid work per rural household each year and keeps direct bank transfers with weekly or 15‑day wage deadlines and compensation for delays.
  • Financing changes include a standard 60:40 Centre–state split, a 90:10 ratio for northeastern and Himalayan states, and full central funding for some Union Territories, alongside a Rs 95,692.31 crore central allocation for 2026–27.
  • Worksite attendance will use face authentication with exceptions in areas with poor connectivity, and village plans prepared by Gram Panchayats will guide the list of approved works.
  • Opposition parties and five states have passed resolutions against the law, and trade unions have called an MGNREGA workers’ strike on May 15 to push for a rollback and stronger guarantees.