New Delhi: The states which have not notified the rural employment guarantee scheme under the new Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act can continue with the earlier version of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) scheme but with modifications. This interim arrangement is valid only for six months.The Union government has issued an order under Section 36 of VB-G RAM G Act for the states that have not notified the scheme under Section 3 of VB-G RAM G Act.The states that have not notified the scheme under the new Act can continue with the earlier version of the scheme but with three modifications: a) 125 days of work instead of 100 days, b) fund sharing between the Union and state government is 60:40 ratio, c) works undertaken under the scheme should strictly comply with Schedule 1 of the new Act. Section 1 of the VB-G RAM G Act lays out its core objectives. Also read: BJP States Among Those Objecting to VB-G RAM G’s Cost-Sharing FormulaAs the interim arrangement is valid only for six months, the states can continue the earlier scheme with modifications, not the Act, till such time they notify the VB-G RAM G scheme.This has been done to ensure that the people keep getting employment in an uninterrupted manner. A worker centric, smooth transition, a senior officer of the rural development ministry said. At least three states, two of them Bharatiya Janata Party-ruled (BJP-rules), have raised concerns about the increased financial burden on them under the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin), or VB-G RAM G, which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), reported The Hindu. The new scheme comes into effect on July 1, 2026.Under VB-G RAM G, most states are required to bear 40% of the total expenditure, under a 60:40 Union-state government cost-sharing pattern. This marks a significant departure from MGNREGA, where the Union government bore 100% of the wage bill while states contributed only a portion of the material costs, roughly 10% of the total budget. The states which have not yet notified are required to accept this cost sharing component in order to continue with the MGNREGA scheme during the interim period. Revised wage ratesThe Union government has also revised the daily wage rate fixing it between Rs 300 and Rs 409 across states and Union Territories. In case of three Gram Panchayats in Sikkim – Gnathang, Lachung and Lachen – a special rate of Rs 450 is fixed, as per a notification issued by the Union Ministry of Rural Development late Tuesday night. For a majority of the states, the wage rate is Rs 300.