VB-G RAM G Act Takes Effect Today: Centre Hikes Rural Wages, Extends Job Guarantee To 125 Days

New Delhi: The Centre on Tuesday rolled out the VB-G RAM G Act, 2025, introducing higher wage rates for rural workers and expanding the guaranteed employment period from 100 to 125 days across the country.

According to a government notification, the revised wage rates came into effect from July 1, with no notified daily wage falling below Rs 300. The Centre said the revision translates to an average wage increase of more than 10 per cent across all states and Union Territories.

The biggest gains have been announced for Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh and Himachal Pradesh, where wage rates have been increased by 15 to 25 per cent.

Meanwhile, Kerala, Haryana, Punjab and Karnataka will now offer among the highest daily wages under the scheme, ranging from over Rs 360 to Rs 409.

The programme will be implemented through Viksit Gram Panchayat Plans, prepared by Gram Panchayats and integrated with the PM Gati Shakti National Master Plan. It will focus on four priority areas - water security, core rural infrastructure, livelihood-related infrastructure and mitigation of extreme weather events while promoting convergence with various government departments.

The scheme will be funded in a 60:40 ratio between the Centre and the state. The Ministry of Rural Development has approved a Central share of Rs 8,508 crore, while the West Bengal government has earmarked Rs 5,672 crore as its contribution.

Wage payments will be made through the DBT-SPARSH system, while non-wage payments will be processed through the SNA-SPARSH module.

Under the scheme, the expenditure pattern will comprise a 60 per cent wage component and 40 per cent material component, with restrictions on labour-displacing machinery to maximise employment generation. An aggregate 60-day no-work period during peak sowing and harvesting seasons will also be notified to ensure the availability of agricultural labour.

The revamped law replaces the earlier rural employment guarantee framework and is aimed at improving livelihood security, increasing rural incomes and generating additional employment opportunities. The Centre said the changes are intended to strengthen the social safety net while supporting rural infrastructure and development.

The revised wage rates have been notified under the VB-G RAM G Act, 2025, and will apply across all states and Union Territories from July 1. Officials said the higher wages are expected to benefit millions of rural households by ensuring better earnings and greater financial security.

The government has stated that the reforms are part of its broader effort to boost rural employment, enhance purchasing power and provide stronger support to vulnerable sections of society through an expanded employment guarantee programme.

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