Introduction

The Union government has introduced the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM G) Act, 2025, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. This act mandates a floor wage of ₹300 per day.

Wage Adjustments Under VB-GRAM G

• 21 States and Union Territories previously paying less than ₹300 per day have adjusted their wages to meet this new minimum.
• States already paying above ₹300 experienced minimal wage hikes.
• Significant wage increases noted in: 
  • Uttar Pradesh: ₹48
  • Bihar: ₹45
  • Madhya Pradesh: ₹39
  • Rajasthan: ₹19
• Northern and northeastern states such as Arunachal Pradesh, Nagaland, and Himachal Pradesh saw hikes above 15% to achieve the ₹300 level.
• Haryana maintains the highest wage rate at ₹409, with a minimal increase of 2.25%.

Criticism and Controversy

Congress and other critics argue that the wages remain unjustifiably low. Former Rural Development Minister Jairam Ramesh and the Expert Committee led by Dr. Anoop Satpathy previously recommended a higher national minimum wage.

• The Congress suggests a ₹400 daily wage for all workers in India.
• Criticism highlights the shift from MGNREGA's rights-based model to a supply-driven model under VB-GRAM G.
• Concerns about new cost-sharing arrangements; States might bear over 40% of the costs if additional work is required beyond limits.

Conclusion

Despite the new wage adjustments, there is significant opposition from political parties, advocating for the repeal of VB-GRAM G and a return to an improved MGNREGA framework.