MGNREGA out, VB-G RAM G Act in

Published 1 July 2026 · local

New Delhi: The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, will come into force on July 1, with the Centre on

New Delhi: The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, will come into force on July 1, with the Centre on Tuesday notifying revised wage rates under the new rural employment guarantee scheme.The national average wage has now increased from Rs 298.8 per day under MGNREGA to Rs 327.4 per day under VB-G RAM G, an average increase of Rs 28.6 per day.The Ministry of Rural Development said the revised wage rates, effective from July 1, have been increased across all 34 states, Union Territories and wage regions.Also read: VB-G RAM G Act to come into force from July 1; Centre says all ready for rolloutIt said a new interim base wage rate of Rs 300 per day has been introduced, ensuring that no notified wage under the programme is below that level. The government said the average increase in wage rates across the country is over 10 per cent.The ministry said the Act provides a statutory guarantee of up to 125 days of wage employment to eligible rural households, compared to 100 days under the existing rural employment framework.It said 21 states and administrative units have been brought up to the new Rs 300 interim base wage rate, while states including Uttar Pradesh, Bihar, Jharkhand, West Bengal and Assam will see wage increases in the range of 15 per cent to 25 per cent. Arunachal Pradesh and Nagaland will see the highest percentage increase of nearly 24.5 per cent, it added.The government said the revised wage structure has been designed to ensure that the greatest gains accrue to states that historically had lower wage rates. It added that states with higher existing wage rates have also received upward revisions, with Haryana having a notified wage rate of Rs 409, Goa Rs 406, Kerala Rs 401 and Sikkim's high-altitude gram panchayats Rs 450 per day.Also read: India replaces MGNREGS with new rural jobs scheme from July 1The ministry said an interim allocation of Rs 95,692.31 crore has been made to states and Union Territories to ensure a smooth transition, timely wage payments and uninterrupted implementation of works under the new framework.Union Rural Development Minister Shivraj Singh Chouhan said the government's priority was to ensure that "no eligible rural worker remains without work even for a single day"."The commencement of the VB-G RAM G Act is a historic step towards building a Viksit Bharat through prosperous villages," he said, adding the Centre and states have worked together to complete preparations for the rollout.The government said existing e-KYC-verified job cards will remain valid until the new Gramin Rozgar Guarantee Cards are issued.The gram panchayats will continue to play a key role in implementation of the scheme, with focus on areas such as natural resource management, water conservation, agriculture and allied activities, rural infrastructure and women's empowerment, it added.According to the ministry, 29 states and Union Territories have made budgetary provisions for the Act, while 24 states have notified their VB-G RAM G state schemes.Prior to this notification, wage rates in several states were below Rs 300, with the lowest notified wage being Rs 241 per day.The rollout of the new law comes amid criticism from opposition parties and activists, who have raised concerns over changes in the existing rural employment guarantee framework.They have questioned if the new system could affect the demand-driven nature of employment, the role of states and panchayats, and whether adequate financial resources would be available for implementation.The government has maintained that the new framework will strengthen rural livelihood security, improve asset creation and provide a more comprehensive approach to employment generation.The national launch of the VB-G RAM G Act will be held on July 2 at Mukkavaripalli village in Obulavaripalle mandal of Andhra Pradesh's Tirupati district, according to the ministry.The event will include the distribution of Gramin Rozgar Guarantee Cards and the release of awareness material related to the mission.