The Union Ministry of Rural Development has notified enhanced wage rates under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), VB-G RAM G Act, 2025, effective from July 1, 2026. The notification introduces an interim base wage rate of Rs 300 per day, ensuring that no notified wage under the programme falls below this level.
Key Changes in Wage Structure
The national average wage under the programme has risen from Rs 298.8 per day under MGNREGA to Rs 327.4 per day under VB-GRAMG, marking an average increase of over 10 percent. A total of 21 states and administrative units that previously had wages below Rs 300 have now been brought up to the new benchmark.
According to the Rural Development Ministry, wage rates have been enhanced across all states and Union Territories. States such as Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh, and Himachal Pradesh are among those witnessing significant hikes ranging between 15 to 25 percent.
Regional Variations in Wage Rates
Kerala, Haryana, Punjab, and Karnataka will have wage rates of over Rs 360 up to Rs 409. Haryana will now have a wage rate of Rs 409 per day, Goa Rs 406, and Kerala Rs 401 per day. The Ministry highlighted that Arunachal Pradesh and Nagaland have received the highest percentage increase of nearly 24.5 percent. States with already higher wages have also seen upward revisions.
In Sikkim’s high altitude gram panchayats, the wage rate has been set at Rs 450 per day.
Government’s Vision and Impact
Union Minister for Rural Development Shivraj Singh Chouhan described the revision as a historic step towards building a Viksit Bharat through prosperous villages. He noted that this historic wage revision will strengthen rural livelihoods, increase purchasing power, and accelerate inclusive development across rural India.
The Ministry noted that the wage revision, combined with the extension of guaranteed employment to 125 days under the new Act, is expected to significantly boost rural incomes, reduce regional disparities, and strengthen the livelihoods of millions of rural workers. It added that this marks another important milestone in the Government’s commitment to Garib Kalyan, Antyodaya, and the vision of Viksit Bharat @2047.
Addressing Regional Wage Disparities
Prior to this notification, wage rates in several states were below Rs 300, with the lowest notified wage being Rs 241 per day. "Under the revised notification, every such state has been brought up to the new benchmark, significantly improving income security for rural workers while narrowing long-standing regional wage disparities," the ministry said in a statement.
The notification combines annual indexation with the newly introduced interim base wage rate to ensure fair wages while reducing historical disparities in rural wage rates, it added.
