VB-G RAM G Act Takes Effect: 125-Day Job Guarantee Begins, Wage Row Erupts

India’s rural employment system has entered a major new phase with the rollout of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin Act 2025 , replacing the two decade old MGNREGA across the country.

The new framework, called VB-G RAM G , increases the guaranteed employment for eligible rural households from 100 days to 125 days per year , alongside a revised wage structure that the Centre says will raise average earnings by over 10 per cent nationwide.

Union Rural Development Minister Shivraj Singh Chouhan called July 1 a “historic day,” noting that MGNREGA was formally wound down a day earlier. The rollout follows discussions at the Rashtriya Gramin Vikas Sammelan , where state and Union Territory rural development ministers confirmed preparedness for implementation.

A key feature of the reform is the introduction of a minimum wage floor of Rs 300 per day , ensuring no rural worker earns below this level for the first time in the programme’s history. States including Uttar Pradesh, Bihar, Jharkhand, West Bengal, and Assam are set to see wage increases of 15 to 25 per cent, while Arunachal Pradesh and Nagaland top the list with nearly 24.5 per cent hikes.

Among higher wage states, revised rates now stand at Haryana Rs 409, Goa Rs 406, Kerala Rs 401, and Sikkim Rs 450 in high altitude panchayats. West Bengal has already notified its own state-level scheme, while Punjab has also moved ahead with implementation despite earlier reservations.

The Centre has released an interim allocation of Rs 95,692.31 crore to ensure timely wage payments, with the total scheme outlay expected to exceed Rs 1.51 lakh crore , making it the largest rural jobs programme in India’s history. Existing job cards will remain valid until new Gramin Rozgar Guarantee Cards are issued, while rules on grievance redressal, administrative costs, and unemployment allowance are still being finalised in consultation with states.

The formal national launch is scheduled for July 2 in Mukkavaripalli village, Tirupati district (Andhra Pradesh), where Shivraj Singh Chouhan will inaugurate the mission alongside Chief Minister N. Chandrababu Naidu , Deputy Chief Minister Pawan Kalyan , and Union Ministers of State Chandra Sekhar Pemmasani and Kamlesh Paswan .

However, the rollout has sparked sharp political opposition. The Congress has demanded repeal of the Act, with Jairam Ramesh calling the wages “unjustifiably low” and demanding Rs 500 per day based on earlier expert recommendations.

Parliamentary standing committee chief Saptagiri Ulaka has criticised the reform, arguing it weakens the rights based, demand driven nature of rural employment by shifting decision making away from the Gram Sabha to officials. He also warned of a heavier fiscal burden on states, citing changes in cost sharing that could significantly raise state liabilities.

Using Haryana as an example, Ulaka argued that meeting the promised 125 days of work could cost the state an additional Rs 5,786 crore , calling the government’s claims a “jumla.”

In Tamil Nadu , protests have erupted over a comparatively small wage hike of around 3 per cent. Activists allege the state is being unfairly treated despite strong past performance, while legal experts point to Section 10 provisions that allow regional wage differentiation, even as questions remain over the Centre’s unpublished wage calculation method.

With 29 states already making budgetary provisions and 24 notifying their own versions of the scheme, implementation now moves to gram panchayats nationwide , even as debate intensifies over fairness, federal balance, and rural welfare design.