Government Sets Rs 300 Benchmark Under New VB-G RAM G Act, Raises Wages By 10 Per Cent

The Government of India has notified the revised wage rates under the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB-G RAM G Act, 2025. The notification has become effective from July 1, 2026. The most important change that has been announced is the introduction of a Rs 300 interim base wage rate. The notification mandates a minimum wage of Rs 300 per day, which means that no notified wage falls below this amount.

According to the government statement, this will benefit 21 states and administrative units where wages were as low as Rs 241 per day before this notification. This fixation of the minimum wage is expected to narrow the long-standing regional disparities and reinforce the dignity of labour.  

Nationally, the average notified wage has risen from Rs 298.80 per day under the former MGNREGA to Rs 327.40 per day under the VB–G RAM G framework. This shows an average increase of around 10 per cent across all 34 states and Union Territories (UTs).

The revised structure aims to promote equity across regions. Due to this, in some states, the wage increase is much higher compared to others. For instance, workers in Arunachal Pradesh and Nagaland will see the highest percentage increase, nearly 24.50 per cent.

Following this will be the states of Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, and Himachal Pradesh, where the wage hike is in the range of 15-25 per cent.

Further, the high-wage states will also not be left behind. They, too, will see upward revision based on the scientific methodology used in determining the wage. The wage in Haryana, Goa, and Kerala will exceed Rs 400, at Rs 409, Rs 406, and Rs 401, respectively. The highest rate has been notified at Rs 450 for Sikkim for high-altitude gram panchayats.

According to Union Minister for Rural Development and Agriculture & Farmers Welfare Shivraj Singh Chouhan, the notified higher rates are not the only improvement enacted in the VB G Ram G scheme; it also guarantees 125 days of employment for every eligible rural household.  

With improvement in wages and minimum guaranteed employment, the government expects to strengthen rural livelihood, purchasing power, and the creation of rural assets. By combining annual indexation with the new base rate, the government attempts to ensure fair wages and inclusive development.

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