The Center increases wages guaranteed in rural areas under the VB–G RAM G Act; minimum rate fixed at ₹ 300 from July 1 | Today’s news

The Union Government has announced revised wage rates under the Viksit Bharat–Garantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, which introduces a national minimum wage of ₹300 per day for workers under the Rural Employment Guarantee Scheme with effect from 1 July 2026.

The announcement, which coincides with the introduction of the new law, increases wage rates in all 34 states, union territories and wage regions. The national average reported wage increased to ₹327.4 per day from ₹298.8 under the former Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), representing an average increase of ₹28.6 per day, or more than 10%.

The Act also increases the statutory wage employment guarantee from 100 days to 125 days for every eligible rural household and aims to create durable rural assets while advancing the vision of Viksit Bharat @2047. The national launch of the Act will be held in Andhra Pradesh on July 2.

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Higher minimum wage

A key feature of the revised wage structure is the introduction of an ongoing wage in the amount ₹300 per day, ensuring that no wage reported under the scheme falls below this level. Before the revision, it was the lowest reported wage ₹241 per day. According to the government, 21 states, union territories and administrative units will directly benefit from the new minimum standard.

The largest percentage increases were concentrated in states that historically had lower rural wage rates. Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh and Himachal Pradesh will see wage adjustments ranging from 15% to 25%, while Arunachal Pradesh and Nagaland will see the highest increase of nearly 24.5%.

States with higher wages also underwent upward revisions under the new methodology. Haryana will now have the highest notified wage at ₹409 per day, followed by Goa ( ₹406) and Kerala ( ₹401). The wage rates in Sikkim’s upland gram panchayats have been fixed at ₹450 per day.

State profits

Announcing the revised rates, Union Minister for Rural Development and Agriculture Shivraj Singh Chouhan said the changes are aimed at enhancing rural livelihoods while reducing regional disparities in wage levels. He said the government had prioritized larger increases for states with historically lower wages, along with extending the job guarantee from 100 days under MGNREGA to 125 days under the new legislation.

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According to the announcement, the revised wages were determined by a combination of annual indexation and the newly introduced interim wages. The government said the framework is designed to provide a more transparent and fair mechanism for setting rural wages while improving income security for workers.

In addition to raising wages

The wage revision is part of the wider implementation of the VB-G RAM G Act of 2025, under which eligible rural households will get up to 125 days of guaranteed wage employment per year. The center expects higher wage rates and greater employment security to strengthen rural purchasing power, boost household incomes and contribute to faster rural economic growth.

To facilitate nationwide rollout, the government has made an interim allocation ₹95,692.31 crore to States and Union Territories to ensure uninterrupted implementation, timely payment of wages and smooth transition from day one of implementation.

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The allocation reflects the government’s commitment to ensure that no state faces obstacles in implementing the new framework. So far 29 States and Union Territories have taken budgetary measures while 24 States have already announced the VB-G RAM G State Scheme.

The government said it had ensured a smooth transition to the new framework. Ongoing work will continue without interruption, while the existing e-KYC verified job cards will remain valid until the new Gramin Rozgar Guarantee Cards are issued to ensure uninterrupted access to employment and timely payment of wages.