Employment Guarantee – New Rural Jobs Law Raises Wages and Extends Work to 125 Days
Employment Guarantee – The Central government has officially introduced the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, which came into effect on July 2. Along with the rollout of the new legislation, the Ministry of Rural Development has announced revised daily wage rates for rural workers across all states, Union Territories and wage regions. The updated framework replaces the earlier rural employment model with higher wages and an expanded employment guarantee aimed at strengthening livelihood opportunities in villages.
Higher Wages Introduced Across the Country
Under the newly implemented programme, the national average daily wage has increased from Rs 298.8 to Rs 327.4, reflecting an average rise of Rs 28.6 per day. The ministry stated that the revised wage structure delivers an average increase of more than 10 percent nationwide.
A key feature of the revised policy is the introduction of an interim minimum wage of Rs 300 per day. This ensures that no worker covered under the scheme will receive a notified wage below this amount, addressing long-standing disparities in wage levels among different states.
Employment Guarantee Expanded to 125 Days
The new Act guarantees up to 125 days of wage employment each year for eligible rural households, replacing the previous limit of 100 days available under the earlier framework. Officials said the additional employment period is intended to provide greater income stability for rural families while supporting village development activities.
According to the ministry, the enhanced employment guarantee forms part of a broader strategy to improve rural livelihoods through sustained public works and community-based projects.
States With Lower Wages Receive Bigger Increases
The revised wage structure has been designed to provide larger benefits to states that previously had comparatively lower wage rates. As part of the changes, 21 states and administrative regions have been brought up to the new interim base wage of Rs 300 per day.
States including Uttar Pradesh, Bihar, Jharkhand, West Bengal and Assam have received wage increases ranging from 15 percent to 25 percent. Arunachal Pradesh and Nagaland recorded the highest percentage increase, with wage revisions of nearly 24.5 percent.
States that already had relatively higher wage levels have also received revised rates. Haryana’s notified daily wage now stands at Rs 409, Goa at Rs 406, Kerala at Rs 401, while high-altitude gram panchayats in Sikkim have been assigned a daily wage of Rs 450.
Funding and Implementation Plans
To support the transition to the new programme, the Centre has made an interim allocation of Rs 95,692.31 crore for states and Union Territories. The ministry said the funding is intended to ensure uninterrupted implementation of development works and timely payment of wages to beneficiaries.
Existing job cards that have completed e-KYC verification will remain valid until new Gramin Rozgar Guarantee Cards are issued. Local gram panchayats will continue to play a central role in implementing projects related to water conservation, natural resource management, agriculture, rural infrastructure and women’s empowerment.
Government Highlights Preparedness for Rollout
Union Rural Development Minister Shivraj Singh Chouhan said the government’s objective is to ensure that every eligible rural worker has access to employment whenever required. He described the implementation of the new Act as an important step toward building stronger villages and improving livelihood opportunities across rural India.
The ministry added that preparations for the nationwide rollout have been completed in coordination with state governments. So far, 29 states and Union Territories have made budgetary provisions under the Act, while 24 states have already notified their respective state-level schemes.
Questions Raised Over the New Framework
The launch of the legislation has also generated debate among opposition parties and several activists. They have expressed concerns about whether the revised system could influence the demand-driven nature of rural employment, alter the responsibilities of states and gram panchayats, or require additional financial support for long-term implementation.
The Central government, however, has maintained that the new framework will strengthen livelihood security, improve the creation of rural assets and provide a more comprehensive approach to employment generation.
The national launch event for the Act is scheduled to take place on July 2 at Mukkavaripalli village in Andhra Pradesh’s Tirupati district. During the programme, beneficiaries will receive Gramin Rozgar Guarantee Cards, and awareness material related to the mission will also be distributed.