Centre raises rural job guarantee wages under VB–G RAM G Act; floor rate set at ₹300 from 1 July

Published 1 July 2026 · india

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

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 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.