Wage Rates Enhanced Across All States and Union Territories; No Notified Wage Below ₹300; Average Increase of Over 10%
The States of Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh, and Himachal Pradesh are expected to see an increase in the range of 15% to 25%.
Kerala, Haryana, Punjab, and Karnataka to have wage rates of over Rs 360 up to Rs 409
Largest wage increases directed towards historically lower-wage States, strengthening the livelihoods of millions of rural workers
NEW DELHI, JULY 01, 2026: The Government of India has notified the revised wage rates payable under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin): VB- G RAM G (विकसित भारत – जी राम जी) Act, 2025, with effect from 1 July 2026, coinciding with the nationwide commencement of the Act.
The revised notification marks a landmark step towards strengthening rural livelihoods by ensuring higher wages, reducing regional disparities and reinforcing the dignity of labour. A defining feature of the notification is the introduction of a ₹300 interim base wage rate, ensuring that no notified wage under the programme is below ₹300 per day.
Union Minister for Rural Development and Agriculture & Farmers Welfare, Shri Shivraj Singh Chouhan, said: “Under the leadership of Hon’ble Prime Minister Shri Narendra Modi, our Government is committed to ensuring that the benefits of development reach every poor family. The commencement of the VB–G RAM G Act is a historic step towards building a Viksit Bharat through prosperous villages. Along with expanding the employment guarantee to 125 days, we have ensured better wages for rural workers. The largest increase has been provided to States where wages were historically lower, so that those who need the greatest support benefit the most. This historic wage revision will strengthen rural livelihoods, increase purchasing power and accelerate inclusive development across rural India.”
Historic Wage Enhancement Across the Country
The revised wage notification provides for an increase in wage rates across all States, Union Territories and wage regions, making it one of the most significant wage revisions under the national rural employment programme.
The key highlights are:
- Wage rates increased across all 34 States/UTs and wage regions.
- 21 States/UTs and administrative units have been brought up to the new ₹300 interim base wage rate.
- The national average notified wage has increased from ₹298.8 per day under MGNREGA to ₹327.4 per day under VB–G RAM G, representing an average increase of ₹28.6 per day.
- The average percentage increase across the country exceeds 10 per cent.
₹300 Becomes the New National Benchmark for Rural Wages under VB- G RAM G.
For the first time under the national rural employment programme, an interim base wage rate of ₹300 per day has been introduced.
Prior to this notification, wage rates in several States were below ₹300, with the lowest notified wage being ₹241 per day. Under the revised notification, every such State has been brought up to the new benchmark, significantly improving income security for rural workers while narrowing long-standing regional wage disparities. The new interim base wage rate directly benefits 21 States and administrative units.
Largest Benefits Reach Historically Lower-Wage States
The revised wage structure has been designed to ensure that the greatest gains accrue to States that historically had lower wage rates, thereby promoting equity and balanced regional development.
Workers in Arunachal Pradesh and Nagaland receive the highest percentage increase of nearly 24.5 per cent, while substantial increases have also been notified for Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Assam, Tripura, West Bengal, Chhattisgarh, Madhya Pradesh, Odisha and several other States.
Higher-Wage States Also Receive Upward Revision
States that already had wage rates above the interim base wage have also received revisions based on the prescribed methodology.
Following the notification, Haryana (₹409), Goa (₹406), Kerala (₹401), and Sikkim (High Altitude Gram Panchayats) (₹450) now have notified wage rates exceeding ₹400 per day, compared to only one wage region under the previous wage structure.
Transparent and Scientific Wage Determination
The revised wages have been notified under the provisions of the VB–G RAM G Act, 2025, based on a transparent and objective methodology. The notification combines annual indexation with the newly introduced interim base wage rate to ensure fair wages while reducing historical disparities in rural wage rates.
Strengthening Rural Prosperity under Viksit Bharat
The revised wage notification complements the transformative provisions of the VB–G RAM G Act, 2025, which provides 125 days of guaranteed wage employment to every eligible rural household. Together, the expanded employment guarantee and enhanced wage rates are expected to strengthen rural incomes, improve purchasing power, create durable rural assets and contribute to inclusive and sustainable rural development.
The commencement of the Act and the notification of revised wage rates mark another significant milestone in the Government’s commitment to Garib Kalyan, Antyodaya and the vision of Viksit Bharat @2047, ensuring that the benefits of India’s growth reach every village and every rural family.
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