Centre raises rural job guarantee wages under VB–G RAM G Act; floor rate set at ₹300 from 1 July
The new VB-G RAM G Act raises the national average rural wage by over 10%, introduces a ₹300 daily wage floor and expands guaranteed employment from 100 to 125 days.
The Union government has notified revised wage rates under the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, introducing a nationwide minimum wage of ₹300 per day for workers under the rural employment guarantee programme with effect from 1 July 2026.
The notification, which coincides with the rollout of the new Act, raises wage rates across all 34 states, union territories and wage regions. The national average notified wage has increased to ₹327.4 per day from ₹298.8 under the erstwhile Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), translating into an average increase of ₹28.6 per day, or more than 10%.
The Act also enhances 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 2 July.
Higher wage floor
A key feature of the revised wage structure is the introduction of an interim wage floor of ₹300 per day, ensuring that no notified wage under the programme falls below that level. Before the revision, the lowest notified wage stood at ₹241 per day. According to the government, 21 states, union territories and administrative units will directly benefit from the new minimum benchmark.
The largest percentage increases have been concentrated in states that historically reported lower rural wage rates. Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh and Himachal Pradesh will see wage revisions ranging from 15% to 25%, while Arunachal Pradesh and Nagaland will record the highest increase of nearly 24.5%.
Higher-wage states have also received 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). Wage rates in Sikkim's high-altitude gram panchayats have been fixed at ₹450 per day.
State-wise gains
Announcing the revised rates, Union Rural Development and Agriculture Minister Shivraj Singh Chouhan said the changes are aimed at strengthening rural livelihoods while reducing regional disparities in wage levels. He said the government has prioritised larger increases for states with historically lower wages alongside expanding the employment guarantee from 100 days under MGNREGA to 125 days under the new legislation.
The revised wages have been determined through a combination of annual indexation and the newly introduced interim wage floor, according to the notification. The government said the framework is designed to provide a more transparent and equitable mechanism for fixing rural wages while improving income security for workers.
Beyond wage hike
The wage revision forms part of the broader rollout of the VB-G RAM G Act, 2025, under which eligible rural households will receive up to 125 days of guaranteed wage employment annually. The Centre expects the higher wage rates and expanded employment guarantee to boost rural purchasing power, support household incomes and contribute to faster rural economic growth.
To facilitate the nationwide rollout, the government has made an interim allocation of ₹95,692.31 crore to states and union territories to ensure uninterrupted implementation, timely wage payments and a seamless transition from the first day of implementation.
The allocation reflects the government's commitment to ensuring that no state faces disruption in implementing the new framework. So far, 29 states and union territories have made budgetary provisions, while 24 states have already notified the VB-G RAM G State Scheme.
The government said it has ensured a smooth transition to the new framework. Ongoing works will continue without interruption, while existing e-KYC-verified job cards will remain valid until the issuance of the new Gramin Rozgar Guarantee Cards, ensuring uninterrupted access to employment and timely payment of wages.
About the Author
Vijay C. Roy is a journalist with over 21 years of experience covering various news beats across different organisations such as Business Standard and The Tribune. In the past, he has covered beats such as finance, auto, MSME, commodities, FMCG, pharmaceutical, agriculture, IT/ITES, infrastructure and start-ups. He joined Mint in February 2025, and covers agriculture, food processing, fertilizers, environment and climate change, bringing over two decades of experience reporting on farm policy, food inflation, crop trade, and rural livelihoods.<br><br>Vijay’s areas of reporting include food security and climate change policies, focusing on their impact on different stakeholders and their implications. His expertise lies in simplifying complex agri-economic issues such as edible oil import dependence, cotton and wheat trends, fertiliser subsidies, and climate-related risks. He has covered key developments including global supply disruptions and evolving trade policies, offering both macroeconomic perspective and field-level context. Known for his credible and balanced reporting, he follows a rigorous, fact-based approach that prioritises accuracy and context. He is driven by a commitment to public interest, aiming to make critical agricultural and economic issues accessible while contributing to informed policy and industry discussions.
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.