·PIB

WAGE RATES UNDER VIKSIT BHARAT-GUARANTEE FOR ROZGAR AND AJEEVIKA MISSION

In this note
  1. At a Glance
  2. Why in the News
  3. Background & Evolution
  4. Core Static Facts
  5. Multi-Dimensional Analysis
  6. Recent Developments
  7. Prelims Hooks
  8. Mains Relevance
  9. Related Topics to Study Next
  10. Common Errors / Trap Areas

1. At a Glance

  • VB–G RAM G Act, 2025 is the successor statute to MGNREGA, 2005, enacted to deliver the rural "right to work" under the Viksit Bharat @2047 vision [1][2].
  • The wage-rate question is the most politically and fiscally sensitive lever in the Act — Section 10 governs Centre-notified wages, with a statutory floor pegged to MGNREGA Section 6 wages [1][2].
  • Implementing ministry: Ministry of Rural Development; commenced across all rural areas w.e.f. 01 July 2026 [1][2].

2. Why in the News

  • PIB release dated 03 February 2026 by the Ministry of Rural Development clarified the wage-rate framework under Sections 10 and 4(3) of the VB–G RAM G Act, 2025 [1].
  • Act commenced 01 July 2026 across rural India, replacing MGNREGA's wage-notification regime in covered areas [2].
  • Parliament passed the Bill on 18–19 December 2025 (introduced in Lok Sabha 16 Dec 2025) [2].

3. Background & Evolution

  • MGNREGA, 2005 — original 100-day guarantee; wages notified under its Section 6 [1].
  • Viksit Bharat @2047 vision drove demand for a revamped, tech-enabled, outcome-linked rural employment statute [2].
  • VB–G RAM G Bill, 2025 introduced in Lok Sabha 16 Dec 2025; passed both Houses 18 Dec 2025 [2].
  • Notified into force 01 July 2026 [2].

4. Core Static Facts

  • Parent Act: Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 [1].
  • Nodal Ministry: Ministry of Rural Development [1].
  • Guarantee: 125 days per rural household per financial year (up from 100 under MGNREGA) [2].
  • Section 10 — Central Government may notify wage rate; shall not be less than wage notified under Section 6 of MGNREGA, 2005 [1].
  • Transition rule — until Centre notifies, MGNREGA Section 6 wage rates continue to apply [1].
  • Section 4(3) — provides for disbursement of daily wages [1].
  • Unemployment allowance — payable by State if employment not provided within 15 days [2].
  • Funding pattern: 60:40 (Centre:State) general; 90:10 for NE & Himalayan States [2].
  • Four work themes: water security, core rural infrastructure, livelihood infrastructure, extreme-weather mitigation [2].
  • Tech mandates: biometric authentication, geospatial planning, mobile dashboards [2].

5. Multi-Dimensional Analysis

  • Legal/Constitutional
  • Statutory floor in Section 10 prevents the Centre from notifying VB–G RAM G wages below MGNREGA Section 6 wages — protects against wage-regression [1].
  • Operates under the rural employment field; aligns with Directive Principles (Art. 41) — right to work [1].

  • Economic

  • 25% expansion of guaranteed person-days (100→125) raises fiscal outlay; 60:40 sharing shifts marginal cost to States [2].
  • Daily-wage disbursement under Section 4(3) supports rural consumption smoothing [1].

  • Administrative

  • Gram Panchayat-led planning with district/state/central oversight; Central & State Gramin Rozgar Guarantee Councils [2].
  • Biometric + geospatial + dashboard stack tightens leakage controls [2].

  • Social

  • Continuity of MGNREGA wage floor prevents disruption for SC/ST/women workers who form majority of muster rolls [1].

  • Governance/Federalism

  • 90:10 NE/Himalayan share preserves cooperative federalism; State retains unemployment-allowance liability — incentive to provide work [2].

6. Recent Developments

  • 16 Dec 2025 — Bill introduced in Lok Sabha [2].
  • 18 Dec 2025 — Passed by Parliament [2].
  • 03 Feb 2026 — PIB clarification on wage-rate mechanism (Sections 10 & 4(3)) [1].
  • 01 Jul 2026 — Act commenced in all rural areas of India [2].

7. Prelims Hooks

  • VB–G RAM G Act enacted in 2025; commenced 01 July 2026 [2].
  • Nodal ministry: Ministry of Rural Development [1].
  • Guarantees 125 days of wage employment per rural household per FY [2].
  • Section 10 empowers Centre to notify wage rate [1].
  • VB–G RAM G wage cannot fall below MGNREGA Section 6 wage [1].
  • Until Centre notifies, MGNREGA Section 6 wage rates continue [1].
  • Section 4(3) mandates daily wage disbursement [1].
  • Unemployment allowance triggered if work not provided within 15 days [2].
  • Centre-State fund share: 60:40 (general), 90:10 (NE/Himalayan) [2].
  • Four thematic work areas include water security and extreme-weather mitigation [2].
  • Bill passed by Parliament on 18 December 2025 [2].
  • Mandates biometric authentication and geospatial planning [2].

8. Mains Relevance

  • GS-II: Government policies for vulnerable sections; welfare schemes; statutory bodies.
  • GS-III: Inclusive growth, employment, rural economy.
  • Plausible stems:
  • "The VB–G RAM G Act, 2025 marks a continuity-with-reform shift from MGNREGA. Critically examine, with reference to wage determination and federal fiscal sharing."
  • "Statutorily pegging VB–G RAM G wages to MGNREGA Section 6 wages is a guarantee against wage regression but a constraint against wage modernization. Discuss."
  • "Evaluate the role of biometric and geospatial technologies in improving outcomes under India's rural employment guarantee regime."

9. Related Topics to Study Next

  • MGNREGA, 2005 — predecessor; Section 6 wage benchmark is load-bearing here.
  • DBT & Aadhaar-Based Payment System (ABPS) — daily-wage disbursement architecture.
  • Article 41 (DPSP) — constitutional anchor for right to work.
  • Finance Commission devolution — interacts with 60:40 / 90:10 sharing.
  • NRLM (DAY-NRLM) — livelihood mission complementing wage employment.
  • PM-KISAN & PMAY-G — sister rural welfare schemes.
  • Viksit Bharat @2047 — overarching vision document.
  • Consumer Price Index–Agricultural Labourers (CPI-AL) — basis for MGNREGA wage indexation.

10. Common Errors / Trap Areas

  • Wrong ministry: it is Rural Development, not Agriculture & Farmers Welfare or Labour & Employment [1].
  • Confusing 125 days (VB–G RAM G) with 100 days (MGNREGA).
  • Assuming MGNREGA is repealed — the Act covers rural areas; MGNREGA Section 6 wage rates remain the floor and default until notification [1].
  • Mixing up Section 10 (wage rate) with Section 4(3) (disbursement) and Section 6 of MGNREGA [1].
  • Treating the 15-day unemployment-allowance trigger as a Central liability — it is a State obligation [2].

Sources

  1. 1WAGE RATES UNDER VIKSIT BHARAT-GUARANTEE FOR ROZGAR AND AJEEVIKA MISSIONpib.gov.in · tier 1
  2. 2The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) VB–G RAM G Bill, 2025prsindia.org · tier 1

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