VB-G RAM G Rural Employment Scheme Rolls Out, Centre Notifies Rs 300 Base Daily Wage

The Ministry of Rural Development notified updated wage scales on Tuesday, effective July 1, 2026. This move coincides with the countrywide launch of the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. The VB-G RAM G replaces the older MGNREGS programme.

The government notification introduces an interim daily base rate of ₹300. This ensures that no rural worker earns below the specified threshold, marking a first for the national rural employment guarantee programme. The ministry stated the update serves as a move towards "higher wages, reduced regional disparities and reinforcing the dignity of labour".

Narrowing Regional Wage Gaps
Compensation levels rose across all 34 states, Union Territories and wage regions. The national average daily wage climbed from ₹298.8 under the previous scheme to ₹327.4 under the VB-G RAM G, reflecting a bump of ₹28.6 daily. This represents an overall increase of more than 10% on average. Authorities raised pay in 21 states and administrative regions to meet the new ₹300 floor. Prior to this adjustment, the minimum daily compensation stood at ₹241.

Historically lower-paying regions received the sharpest hikes, ranging between 15% and 25%. These territories include Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh and Himachal Pradesh, according to a Hindustan Times report.

Arunachal Pradesh and Nagaland recorded the highest percentage increases at roughly 24.5%, while the ministry also announced substantial increases for Uttarakhand, Tripura, Chhattisgarh, Madhya Pradesh and Odisha.

Union Rural Development Minister Shivraj Singh Chouhan said to ANI, that the pay restructure ensures "the largest increase" goes to regions with traditionally low wages. This will bolster rural livelihoods and speed up development.

Top Tier Wage Revisions

States that were already paying above the new ₹300 minimum wage also received revisions under the Centre's prescribed wage indexation formula. Among them, Haryana, Kerala, Punjab and Karnataka continue to offer some of the highest notified wages, ranging from over ₹360 to ₹409 per day.

Haryana now has the highest notified state wage at ₹409 per day, while Sikkim's High Altitude Gram Panchayats have the highest notified wage overall at ₹450. Goa and Kerala follow at ₹406 and ₹401, respectively. Under the previous wage structure, only one wage region had a notified wage above ₹400.

The VB-G RAM G Act also increases the annual rural employment guarantee from 100 days to 125 days. According to the ministry, the revised wage rates combine the annual indexation exercise with the newly introduced interim wage floor through a transparent and scientific methodology aimed at reducing regional disparities in rural wages. Officials said the reforms are aligned with the government's broader vision of Garib Kalyan, Antyodaya and Viksit Bharat @2047.