New Delhi: The Union government has officially notified a minimum daily wage of ₹300 under the newly introduced Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM G) Act, 2025, which came into effect on July 1, 2026, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The revised wage structure aims to establish a nationwide minimum wage floor while introducing significant changes to the framework governing rural employment across the country.
According to the notification, 21 States and Union Territories that previously paid less than ₹300 per day under MGNREGA have received substantial wage hikes to meet the new minimum threshold. The move is expected to benefit millions of rural workers in regions where wages had remained below the newly prescribed floor.
Several Hindi-speaking States recorded notable increases in daily wages. Uttar Pradesh witnessed a hike of ₹48, Bihar saw an increase of ₹45, Madhya Pradesh received ₹39, and Rajasthan’s wage rate rose by ₹19. Other States, including Arunachal Pradesh, Nagaland, Himachal Pradesh, Uttarakhand, Jharkhand, Assam, Tripura, Sikkim, and West Bengal, also registered significant increases exceeding 15 percent to comply with the new minimum wage requirement.
Among the States, Haryana continues to offer the highest notified daily wage at ₹409, followed by Goa at ₹406 and Kerala at ₹401. Despite having the highest wage rate, Haryana recorded only a modest increase of around 2.25 percent, as its previous wage level was already well above the new floor. Southern States such as Telangana, Andhra Pradesh, Tamil Nadu, and Karnataka, where wages had already crossed ₹300 under MGNREGA, experienced only marginal revisions. Telangana registered the smallest increase of just ₹1, taking its daily wage to ₹308.
The implementation of VB-GRAM G has also triggered political debate. Congress leader and former Rural Development Minister Jairam Ramesh criticised the revised wage rates, arguing that ₹300 remains insufficient given rising living costs. He reiterated the party’s demand for a national minimum wage of ₹400 per day for all workers, including those employed under the rural employment programme. Ramesh also referred to the recommendations of the Anoop Satpathy Committee, which had proposed a national wage floor of ₹375 per day in 2019.
Congress MP Saptagiri Ulaka also opposed the new legislation, calling for the restoration of MGNREGA. He expressed concern over the revised funding mechanism, stating that under VB-GRAM G the combined expenditure on labour and materials would now follow a 60:40 cost-sharing ratio, potentially increasing the financial burden on State governments if additional employment is generated beyond the prescribed limits.
The rollout of VB-GRAM G marks a major policy shift in India’s rural employment landscape. While the government has highlighted the introduction of a nationwide wage floor and higher payments in several States, critics argue that wage levels remain inadequate and that the new funding structure could place additional pressure on State finances.
