VB-GRAM G workers to get a minimum of ₹300 per day as wage rates notified by Centre

What Happened

• With the VB-G RAM G Act coming into force on July 1, 2026, the Central Government has notified state-wise daily wage rates under the new scheme, setting a mandatory national floor of ₹300 per day.
• 21 states and Union Territories that had notified MGNREGA wages below ₹300 in FY 2025-26 are brought up to this floor — their new VB-G RAM G rate is ₹300.
• Haryana retains the highest wage rate at ₹409 per day; Goa is second at ₹406 and Kerala at ₹401 per day — southern states with already high wages see minimal upward revision.
• Telangana has been notified at ₹308 per day under the new scheme.
• The national average daily wage rises from ₹298.8 (under MGNREGA in the last notified schedule) to ₹327.4 under VB-G RAM G — an increase of more than 10 per cent.
• States with higher wages under MGNREGA (primarily southern and a few northern states) see only marginal revisions because their existing rates already exceed the ₹300 floor, and the CPI-AL index revision accounts for the marginal increase.

Static Topic Bridges

State-wise Wage Notification under Section 6 of the Employment Acts

Under both MGNREGA (Section 6) and its successor VB-G RAM G, the Central Government notifies a daily wage rate for each state and Union Territory by gazette notification. These rates are not uniform across the country — they are indexed to the Consumer Price Index for Agricultural Labourers (CPI-AL), a price index compiled by the Labour Bureau (under the Ministry of Labour and Employment) that tracks the cost of living for agricultural worker households. Because agricultural wage costs and price levels differ substantially across Indian states, the CPI-AL indexation produces significant interstate variation in notified daily wage rates. The Central Government is also empowered to set a floor — a minimum threshold below which no state's notified wage may fall — which is the mechanism used to establish the ₹300 floor under VB-G RAM G.

Interstate Wage Disparity and Regional Development Patterns

The wage notification data under VB-G RAM G reveals a persistent north-south and large state-small state divide in rural wage rates. Historically, southern states (Kerala, Goa, Karnataka, Tamil Nadu) and economically advanced northern states (Haryana, Himachal Pradesh) have commanded higher rural wage rates due to higher agricultural productivity, stronger labour markets, and higher local cost of living. States in the northeast (Nagaland, Mizoram, Assam) and central India (Chhattisgarh, Jharkhand) have consistently had lower notified wages — a reflection of lower agricultural wages in the CPI-AL base. This creates a policy tension: a uniform national floor disproportionately benefits low-wage states but does not address the underlying structural causes of low rural wages in those states (poor agricultural productivity, weak off-farm employment, infrastructure deficits).

Minimum Wage Architecture in India — Three Tiers

India has a three-tier minimum wage architecture: (i) the National Floor Level Minimum Wage (NFLMW) under the Minimum Wages Act, 1948 and Code on Wages, 2019 (scheduled to replace the 1948 Act), which is a national advisory floor applicable to all scheduled employment; (ii) state-specific minimum wages notified for different categories of employment under state government authority; and (iii) scheme-specific wage rates notified by the Central Government for public employment programmes (MGNREGA/VB-G RAM G). The VB-G RAM G ₹300 floor operates within the third tier — it is a programme-specific floor applicable to work done under the scheme, distinct from the NFLMW which covers the broader labour market. The Code on Wages, 2019 (passed by Parliament but not yet fully notified) seeks to consolidate four wage-related laws, including the Minimum Wages Act, 1948, and mandate a universal National Floor Wage.

Social Audit and Accountability Mechanisms

Both MGNREGA and VB-G RAM G mandate social audits as a core accountability mechanism. Under MGNREGA, Section 17 required the gram sabha to conduct regular social audits of all works under the scheme, with Social Audit Units (SAUs) institutionalised in each state. Social audits allow beneficiaries and the public to scrutinise whether wages were actually paid, whether work was genuinely conducted, and whether assets were created as recorded. The VB-G RAM G Act strengthens this — it mandates technology-based monitoring alongside social audits and requires public disclosure at the gram panchayat level. Given that wage underpayment and ghost worker registration were the most common MGNREGA grievances, this transparency architecture is directly relevant to whether the higher ₹300 floor is realised in practice.

Key Facts & Data

• Effective date: July 1, 2026
• National floor wage: ₹300/day (mandatory minimum under VB-G RAM G)
• States/UTs at ₹300 floor: 21 (previously had MGNREGA wages below ₹300)
• Haryana: ₹409/day (highest in country)
• Goa: ₹406/day; Kerala: ₹401/day (high-wage states, minimal revision)
• Telangana: ₹308/day
• National average wage: ₹327.4/day (up from ₹298.8 under MGNREGA — >10% increase)
• Employment guarantee: 125 days/household/year (up from 100 days under MGNREGA)
• Wage indexation: CPI-AL (Labour Bureau, base year 2009), revised April 1 annually
• VB-G RAM G Act: Passed December 18–19, 2025; Presidential assent December 20, 2025
• MGNREGA replaced: Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (42 of 2005)
• Unemployment allowance: ≥¼ of notified wage rate (first 30 days); ≥½ (rest of year) — state liability
• Code on Wages, 2019: Pending full notification; will consolidate Minimum Wages Act, 1948 and three other wage laws