The Ministry of Rural Development notified updated wage scales effective July 1, 2026, coinciding with the countrywide launch of the VB-G RAM G Act which replaces MGNREGS.
A new interim daily base rate of ’300 has been introduced to ensure no rural worker earns below this specified national threshold.
Union Rural Development Minister Shivraj Singh Chouhan stated that the pay restructure ensures the largest wage increases go to traditionally low-paying regions like Uttar Pradesh and Bihar.
The Ministry of Rural Development notified updated wage scales on Tuesday, effective July 1, 2026. This move coincides with the countrywide launch of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. The VB-G RAM G replaces the older MGNREGS programme.
The government notification introduces an interim daily base rate of ₹300. This ensures that no rural worker earns below the specified threshold, marking a first for the national rural employment guarantee programme. The ministry stated the update serves as a move towards "higher wages, reduced regional disparities and reinforcing the dignity of labour".
Narrowing Regional Wage Gaps
Compensation levels rose across all 34 states, Union Territories and wage regions. The national average daily wage climbed from ₹298.8 under the previous scheme to ₹327.4 under the VB-G RAM G, reflecting a bump of ₹28.6 daily. This represents an overall increase of more than 10% on average. Authorities raised pay in 21 states and administrative regions to meet the new ₹300 floor. Prior to this adjustment, the minimum daily compensation stood at ₹241.
According to a Hindustan Times report, historically lower-paying regions received the sharpest hikes, ranging between 15% and 25%. These territories include Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh and Himachal Pradesh.
Arunachal Pradesh and Nagaland recorded the highest percentage increases at roughly 24.5%, while the ministry also announced substantial increases for Uttarakhand, Tripura, Chhattisgarh, Madhya Pradesh and Odisha.
Union Rural Development Minister Shivraj Singh Chouhan said to ANI, that the pay restructure ensures "the largest increase" goes to regions with traditionally low wages. This will bolster rural livelihoods and speed up development.
Top Tier Wage Revisions
States maintaining pay scales above the ₹300 floor also saw upward revisions based on the prescribed methodology. Kerala, Haryana, Punjab and Karnataka currently feature pay scales spanning from above ₹360 to ₹409.
Haryana now offers the highest notified wage at ₹409, while Sikkim High Altitude Gram Panchayats provide ₹450. Goa and Kerala follow closely at ₹406 and ₹401 respectively. Previously, just one wage region surpassed the ₹400 mark, the report stated.
The new VB-G RAM G Act expands guaranteed rural employment to 125 days annually. The ministry informed that these revised wages merge standard annual indexation with the fresh interim base rate. This utilises a transparent and scientific calculation method intended to diminish long-standing inequalities in rural compensation. Ministry officials linked the sweeping policy update to the broader national objectives of Garib Kalyan, Antyodaya and Viksit Bharat @2047.
