The Viksit Bharat – Guarantee for Rozgar and Aajeevika Mission - Gramin (VB-G RAM G) Act, 2025 came into force across India on 1 July 2026, guaranteeing rural households 125 days of wage employment per year and lifting the national average daily wage by more than 10 per cent — from ₹298.8 to ₹327.4. The Act also mandates that no notified daily wage anywhere in the country falls below ₹300.

What the Act Guarantees

Under the new legislation, eligible rural households receive a statutory entitlement to 125 days of guaranteed wage employment annually — an increase from the earlier framework. The Act is designed to make rural employment more transparent and outcome-driven, while accelerating the creation of durable rural assets, conservation of natural resources, enhancement of agricultural productivity, livelihood promotion, and women-led development, according to an official statement.

Wage Increases Across States

The Government of India has notified revised wage rates under the Act for all states, Union Territories, and notified wage areas. States including Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Arunachal Pradesh, and Himachal Pradesh have seen wage hikes ranging from 15 to 25 per cent, among the steepest in the country. The floor wage of ₹300 per day is now a statutory floor, not merely a guideline.

Funding and Rollout Readiness

To ensure uninterrupted implementation from day one, the Centre has already released an interim allocation of ₹95,692.31 crore to states and Union Territories. The funds are intended to facilitate employment generation, timely wage payments, and execution of development works. Officials stated that all necessary administrative, financial, and technical preparations have been completed ahead of the commencement date.

What the Government Said

Union Minister for Rural Development and Agriculture Shivraj Singh Chouhan described the Act as 'not merely a new law but a transformative initiative that ushers in a new era of dignity, self-respect and livelihood security for millions of rural workers,' attributing the push to the leadership of Prime Minister Narendra Modi. Chouhan expressed confidence that the Act would create livelihood opportunities in villages, strengthen women's empowerment, and advance the vision of an Atmanirbhar and Viksit Rural India.

National Launch Event

A formal National Launch Programme is scheduled for 2 July 2026 at Mukkavaripalle Village, Obulavaripalle Mandal, Tirupati District, Andhra Pradesh. The event will be attended by Union Minister Chouhan and Andhra Pradesh Chief Minister N. Chandrababu Naidu. The programme will include distribution of Rural Employment Guarantee Cards to beneficiaries, the launch of the VB-G RAM G software platform, release of key publications, and the inauguration of several implementation initiatives.

With the Act now operational, the government's stated next step is embedding verifiable employment outcomes into the disbursement mechanism — a structural test that will determine whether the wage floor translates into measurable rural income gains at scale.