New Wage Rates Notified Under VB-G RAM G Act
The Indian government has officially notified new wage rates under the Vaya Bhara Gareeb Ram Gareeb Aadmi Guarantee (VB-G RAM G) Act, which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). According to the Ministry of Rural Development, the revised wages are based on the prevailing MGNREGA rates but have been adjusted for inflation and regional cost variations.
Details of the Wage Revision
The notification, issued on July 1, 2026, introduces a uniform wage structure across states, with differentials based on the Consumer Price Index for Agricultural Labourers (CPI-AL). The new rates range from ₹250 to ₹350 per day, depending on the state. For example, workers in high-cost states like Kerala and Haryana will receive ₹350, while those in lower-cost states like Bihar and Uttar Pradesh will get ₹250. This marks a 10-15% increase over the previous MGNREGA wages, which were last revised in 2024.
Ajith Athrady, reporting for the publication, noted that the government aims to ensure fair compensation while maintaining fiscal discipline. The Ministry stated that the new Act will cover all rural households, guaranteeing 150 days of employment per year, up from 100 days under MGNREGA.
Impact on Workers and Implementation
The VB-G RAM G Act also introduces a grievance redressal mechanism and a digital payment system to reduce delays. However, experts have raised concerns about the adequacy of the wage hike given rising inflation. The government expects the new rates to benefit over 15 crore rural households, with an additional budget allocation of ₹1.2 lakh crore for the fiscal year 2026-27.
Implementation will begin from July 15, 2026, with all state governments required to update their job card databases and migrate to the new system. The Ministry has also launched a mobile app for workers to track their employment and payments.
