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Centre Launches VB-G RAM G Act 2025: Rural Employment Guarantee Increased to 125 Days, Daily Wages Raised

  • By Thetripurapost Desk, New Delhi
  • Jul 01, 2026
  • 114

In a major boost to rural  rural development and employment and livelihood security, the Central Government has officially implemented the VIG-Bharat-Guarantee for Employment and Livelihood Mission (Rural) Act, 2025 (VB-G RAM G Act) from Wednesday. The new legislation expands the annual employment guarantee for eligible rural households from 100 days to 125 days, while also increasing the average daily wage across the country.

The reform is aimed at strengthening rural income, creating sustainable employment opportunities, improving village infrastructure, and supporting agriculture through community-based development projects.

Rural Employment Guarantee Extended to 125 Days

Under the newly enacted VB-G RAM G Act 2025, every eligible rural household will now receive a legal guarantee of 125 days of wage employment each financial year, replacing the previous limit of 100 days.

 

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The Central Government believes the enhanced employment period will improve financial stability for millions of rural families and generate additional livelihood opportunities across villages.

Daily Wage Increased Across India

The government has also revised wage rates under the scheme. The average daily wage has increased from ₹298.80 to ₹327.40, providing workers with an average hike of ₹28.60 per day.

To ensure uninterrupted implementation and timely wage payments, the Centre has released ₹95,692.31 crore to states and Union Territories.

National Launch Ceremony on July 2

The nationwide rollout of the programme will officially begin on July 2 at Mukkavaripalli village in Tirupati district, Andhra Pradesh.

During the inaugural event, beneficiaries will receive the newly introduced Rural Employment Guarantee Cards, and awareness campaigns will educate villagers about the benefits and procedures of the new employment programme.

 

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Union Rural Development Minister Shivraj Singh Chouhan said the government has completed all preparations for the nationwide launch.

Key Highlights of the VB-G RAM G Scheme

Existing Job Cards Remain Valid

Workers whose existing job cards have successfully completed e-KYC verification can continue working with their current cards until the new Rural Employment Guarantee Cards are issued.

Gram Panchayats Continue to Lead Implementation

The scheme retains the important role of Gram Panchayats in selecting, approving and monitoring development projects.

Priority will be given to:

  • Water conservation
  • Natural resource management
  • Agricultural development
  • Rural infrastructure creation
  • Women empowerment and livelihood generation

States Ready for Implementation

According to the Ministry of Rural Development:

  • 29 States and Union Territories have already made budgetary provisions for implementing the Act.
  • 24 States have submitted their official VB-G RAM G implementation plans.

Centre to Bear 90% Cost in North-East

The funding structure remains a shared responsibility between the Centre and state governments.

For most states:

  • Central Government: 60%
  • State Government: 40%

However, for the North-Eastern States, along with Uttarakhand, Himachal Pradesh, and Jammu & Kashmir, the Central Government will bear 90% of the total expenditure, significantly reducing the financial burden on state governments.

Provision During Peak Farming Seasons

The law also allows state governments to restrict employment under the scheme to a maximum of 60 days in a year during peak agricultural seasons such as sowing and harvesting to ensure adequate labour availability for farming operations.

Major Push for Rural Development

With higher employment guarantees, increased wages, enhanced financial support for states, and continued decentralised implementation through Gram Panchayats, the VB-G RAM G Act 2025 is expected to become one of India's most significant rural development initiatives.

The programme is designed to strengthen rural livelihoods, improve village infrastructure, conserve natural resources, and create sustainable employment opportunities while ensuring timely wage payments to millions of beneficiaries across the country.

 

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