New rural job scheme VB-G RAM-G pays 10% more than MGNREGA

New Delhi: The Centre has increased wages under the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission-Gramin (VB-G RAM-G) by an average of over 10% compared with rates under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which the new scheme replaces from July 1.

The average daily wage under VB-G RAM-G has been raised to ₹327.4 from ₹298.8 under MGNREGA, according to the rural development ministry. A base wage of ₹300 a day has also been introduced, benefiting 21 states and Union territories where MGNREGA wages were below that level. The ministry said the revised wages have been notified using a "transparent and objective methodology" that combines annual indexation with the new base wage to reduce historical disparities in rural wage rates.

States including Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh and Himachal Pradesh will see wage increases of 15-25%, higher than the national average, as they had among the lowest MGNREGA wage rates.


Daily wages under the new scheme will range from ₹300 to ₹450, with the highest rate applicable in parts of Sikkim. The new law also raises the annual employment guarantee to 125 days per rural household from 100 days under MGNREGA. Unlike the previous scheme, states-except those in the Northeast and hilly regions-will bear 40% of the wage cost, with the Centre funding the remainder.

Senior Congress leader Jairam Ramesh criticised the increase as inadequate, noting that an expert committee headed by Anoop Satpathy had recommended a floor wage of ₹375 a day in 2019.