India Sets ₹300 Rural Wage Floor Under VB-G RAM, Expanding Work Guarantee to 125 Days
Updated
Updated · WION · Jul 2
India Sets ₹300 Rural Wage Floor Under VB-G RAM, Expanding Work Guarantee to 125 Days
3 articles · Updated · WION · Jul 2
Summary
₹300 a day is now the national minimum under India’s VB-G RAM Act 2025, replacing MGNREGA and lifting the average rural wage to ₹327.4 from ₹298.8.
125 days of guaranteed work per household are now covered, up from 100, as the government targets stronger consumption by raising pay at the bottom of the rural wage ladder.
₹95,692 crore has been allocated to states for the transition, while low-wage states including Uttar Pradesh, Bihar and Jharkhand are set for the steepest 15% to 25% increases.
24 states have notified their schemes and 29 have made budget provisions, leaving implementation under scrutiny as opposition parties and activists question changes to the old framework.
Thursday’s formal launch in Tirupati marks the biggest overhaul of India’s rural jobs safety net since MGNREGA began in 2005.
Is India's new employment act a pro-growth reform or a quiet dismantling of its rural safety net?
Can state governments afford the new rural employment scheme without cutting other essential services?
Will the new act's mandatory tech exclude the most vulnerable rural workers from their right to employment?
125 Days of Guaranteed Rural Work: Inside India’s VB-G RAM G Act and Its Digital Overhaul
Overview
On July 1, 2026, India ushered in a new era for rural development with the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G Act). This Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005, which guaranteed 100 days of wage employment each year. Building on MGNREGA’s foundation, the VB-G RAM G Act introduces advanced technology and modernizes rural employment schemes. Its goal is to make rural development more efficient, transparent, and impactful, ensuring better livelihood security and infrastructure for rural communities across the nation.