President Assents To New Rural Employment Guarantee Law
ECONOMY & POLICY

President Assents To New Rural Employment Guarantee Law

The President of India has given assent to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, marking a major reform in India’s rural employment and livelihood framework. The Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, and enhances the statutory wage employment guarantee to at least 125 days per rural household each financial year, aligning rural development policy with the vision of Viksit Bharat @2047.

The new legislation is anchored in the principles of empowerment, inclusive growth, convergence and saturation-based delivery. It seeks to transform rural employment from a standalone welfare measure into an integrated development instrument by linking wage employment with the creation of durable and productive rural assets. The Act strengthens income security for rural households, modernises governance and accountability mechanisms, and aims to build a resilient and self-reliant Rural Bharat.

Under the Act, eligible rural households whose adult members volunteer for unskilled manual work are entitled to a statutory guarantee of not less than 125 days of employment per year, an increase from the earlier 100-day provision. To balance agricultural labour requirements during peak sowing and harvesting seasons, states are empowered to notify an aggregated pause period of up to 60 days in a year, without diluting the overall employment guarantee. The Act also mandates timely wage payments on a weekly basis or within 15 days of work completion, with compensation payable in case of delays.

Wage employment is explicitly linked to the creation of durable public assets across four priority areas: water security, core rural infrastructure, livelihood-related infrastructure, and works to mitigate extreme weather events. Planning is undertaken through Viksit Gram Panchayat Plans approved by Gram Sabhas and digitally integrated with national platforms such as PM Gati Shakti to ensure convergence, avoid duplication and achieve saturation of critical infrastructure based on local needs.

The Act introduces a reformed financial architecture, implementing the programme as a centrally sponsored scheme with a cost-sharing pattern of 60:40 between the Centre and states, 90:10 for North Eastern and Himalayan states, and full central funding for Union Territories without legislatures. Administrative expenditure limits have been raised from 6 per cent to 9 per cent to strengthen staffing, training and field-level capacity. The legislation also restores unemployment allowance as a meaningful statutory safeguard where employment is not provided within the stipulated timeframe.

Emphasising decentralisation, the Act vests planning, implementation and monitoring authority with Panchayats and district-level institutions, while national-level integration focuses on coordination and transparency rather than centralised control. Technology-enabled tools such as biometric authentication, geo-tagging and real-time dashboards are designed to enhance transparency and inclusion, complemented by strengthened social audits through Gram Sabhas.

The enactment of the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 represents a significant renewal of India’s rural employment guarantee, positioning it as a strategic driver of empowerment, sustainable livelihoods and long-term rural prosperity in line with the country’s development goals

The President of India has given assent to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, marking a major reform in India’s rural employment and livelihood framework. The Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, and enhances the statutory wage employment guarantee to at least 125 days per rural household each financial year, aligning rural development policy with the vision of Viksit Bharat @2047. The new legislation is anchored in the principles of empowerment, inclusive growth, convergence and saturation-based delivery. It seeks to transform rural employment from a standalone welfare measure into an integrated development instrument by linking wage employment with the creation of durable and productive rural assets. The Act strengthens income security for rural households, modernises governance and accountability mechanisms, and aims to build a resilient and self-reliant Rural Bharat. Under the Act, eligible rural households whose adult members volunteer for unskilled manual work are entitled to a statutory guarantee of not less than 125 days of employment per year, an increase from the earlier 100-day provision. To balance agricultural labour requirements during peak sowing and harvesting seasons, states are empowered to notify an aggregated pause period of up to 60 days in a year, without diluting the overall employment guarantee. The Act also mandates timely wage payments on a weekly basis or within 15 days of work completion, with compensation payable in case of delays. Wage employment is explicitly linked to the creation of durable public assets across four priority areas: water security, core rural infrastructure, livelihood-related infrastructure, and works to mitigate extreme weather events. Planning is undertaken through Viksit Gram Panchayat Plans approved by Gram Sabhas and digitally integrated with national platforms such as PM Gati Shakti to ensure convergence, avoid duplication and achieve saturation of critical infrastructure based on local needs. The Act introduces a reformed financial architecture, implementing the programme as a centrally sponsored scheme with a cost-sharing pattern of 60:40 between the Centre and states, 90:10 for North Eastern and Himalayan states, and full central funding for Union Territories without legislatures. Administrative expenditure limits have been raised from 6 per cent to 9 per cent to strengthen staffing, training and field-level capacity. The legislation also restores unemployment allowance as a meaningful statutory safeguard where employment is not provided within the stipulated timeframe. Emphasising decentralisation, the Act vests planning, implementation and monitoring authority with Panchayats and district-level institutions, while national-level integration focuses on coordination and transparency rather than centralised control. Technology-enabled tools such as biometric authentication, geo-tagging and real-time dashboards are designed to enhance transparency and inclusion, complemented by strengthened social audits through Gram Sabhas. The enactment of the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 represents a significant renewal of India’s rural employment guarantee, positioning it as a strategic driver of empowerment, sustainable livelihoods and long-term rural prosperity in line with the country’s development goals

Next Story
Infrastructure Urban

Centre Clears Power Distribution Upgrade for Uttar Pradesh

The Central Government has approved power distribution projects worth Rs 407.39 billion for Uttar Pradesh under the Revamped Distribution Sector Scheme (RDSS). The investment will be used to modernise the state's electricity distribution infrastructure and strengthen network capacity across urban and rural areas. The package targets one of the country's largest distribution networks as the state experiences rapid urbanisation and rising electricity consumption. Planned interventions include the strengthening of distribution lines, modernisation of substations, replacement of ageing electrical ..

Next Story
Infrastructure Energy

India Data Centres To Consume 191 TWh By 2040 Driving Renewables

A Wood Mackenzie report says India's operational data centre capacity is projected to increase more than fivefold to 12 gigawatt (GW) by 2030 from 2.2 GW in 2025 as artificial intelligence (AI) and cloud computing drive demand. It projects electricity consumption to rise from 10 terawatt-hour (TWh) in 2025 to 191 TWh by 2040. The study forecasts a compound annual growth rate of around 40 per cent and notes AI-dedicated capacity will surge nearly 24-fold from 275 megawatt (MW) in 2025 to 6,546 MW by 2030. The report places India's digital economy at Rs 32 trillion (tn) in 2025 and says it contr..

Next Story
Infrastructure Transport

Hydrogen Train Completes 1,200 Kilometres Of Trials

India's first hydrogen train was flagged off between Jind and Sonipat on July 17 and has travelled over 1,200 kilometres in trials, saving diesel consumption of more than 3,200 litres, a Railway Ministry press release said. The deployment marks the introduction of a zero-emission fuel cell train into route testing and represents a milestone in domestic rail innovation. The train generates electricity onboard through a chemical reaction between hydrogen and oxygen, producing electricity to propel the vehicle while emitting only water vapour as a by-product. There is no smoke and no tailpipe car..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement