Worker rolls shrink by 67.6 lakh in first fortnight after MGNREGS transition, finds LibTech

According to an analysis by , in the two weeks following the shift from Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to Viksit Bharat Guarantee (VB-G RAM G) for Rozgar and Ajeevika Mission Gramin, the number of registered workers dropped from 27 crore to 26.33 crore, a net reduction of 67.6 lakh workers or 2.5% of the total workforce registered under the rural employment scheme. LibTech India is a consortium of academics and activists.

The number of active workers who have worked at least once in the last three years under the scheme also decreased by around 26.3 lakh workers (2.43%) from 10.84 crore to 10.57 crore.

On July 1, 2026, the Viksit Bharat – Rozgar and Ajeevika Mission (Gramin) Guarantee Act (VB G RAM G) 2025 came into force, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.

‘Dynamic figure’

However, Ministry of Rural Development officials disputed the findings, saying the analysis covered only a short period and did not reflect the continuous verification, updating and renewal of labor and job card records carried out by States and Union Territories. Officials said the number of registered and active employees is a dynamic figure and changes as records are updated. Ministry officials also put the onus on the States, asserting that they must follow the Standard Operating Procedures laid down by the Center for any deletion. They added that no complaints of denial of employment due to non-completion of E-KYC or Face Authentication have been received and around 84,000 Gramin Rozgar Guarantee Cards have already been issued under the new law, covering 1.91 lakh workers.

According to LibTech India, three states – Bihar, Uttar Pradesh and Telangana – account for most of the net decline in registered workers and decline in active workers. Bihar saw 5.98 lakh workers deregistered, Uttar Pradesh 8.06 lakh and Telangana 7.2 lakh.

The group said that while the transition guidelines stipulate that e-KYC-certified MGNREGA Job Cards will remain valid and employees should not be denied employment due to pending e-KYC, there is little clarity on how workers who fail to complete e-KYC or facial recognition-based verification will be protected from negligence.

“The official transition guidance stated that e-KYC-certified MGNREGA job cards would remain valid until new Gramin Rozgar Guarantee Cards are issued, that workers should not be denied employment merely because e-KYC is pending, and that facilitation would continue. However, the publicly available framework did not explain in comparable operational details how workers who failed to complete e-KYC or FRS would be transferred, how delinquencies would be detected or how quickly restoration would work,” Venkateswarlu said. Kuruva is a researcher at LibTech India.

LibTech described the latest decline as the fourth major reduction in the number of workers in recent years, coinciding with the digital compliance measure, after Aadhaar-based payments in 2022-23, mandatory e-KYC in 2025 and facial recognition-based onboarding verification in 2026.

“The concern expressed here is not to oppose database validation itself, but to a recurring operational pattern: Every mandated digital requirement has been followed by a sharp decline in workers, with the greatest risk borne by workers who face technical, connectivity, mobility, documentation or front-line support barriers,” Mr. Kuruva said.

The organization noted that publicly available data does not indicate why employees were dismissed, whether e-KYC or facial recognition verification was expected, whether advance notice was given, whether Gram Sabha verification was done or whether an appeal mechanism was in place. Nor is the gender, age or caste profile of those affected disclosed.

A senior Ministry of Rural Development official said that since the VB-G RAM G became operational, jobs have been provided to 76.71 lakh workers seeking employment.