GS 2: Social JusticeGS 2: GovernanceGS 3: EconomyPrelims

Centre fixes wage; VB-G RAM G to offer minimum ₹300 a day, Pg1

Centre mandates ₹300 daily floor wage under new VB-G RAM G Act, replacing MGNREGA, sparking Congress criticism over 'unjustifiably low' rates.

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Key Highlights:

  • The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025 came into effect, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.
  • The Central government has fixed a floor wage of ₹300 per day under the new VB-G RAM G Act, 2025.
  • 21 States and Union Territories that previously paid less than ₹300 under MGNREGA have had their wage rates increased to this new floor.
  • States like Haryana (₹409), Goa (₹406), and Kerala (₹401) now have the highest wage rates, exceeding ₹400.
  • The Congress party criticized the new wage as "unjustifiably low" and reiterated its demand for a national daily minimum wage of ₹400.

Detailed Insights:

  • The new VB-G RAM G Act, 2025 aims to provide guaranteed employment and livelihood opportunities in rural areas.
  • Major Hindi-belt states such as Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan saw significant wage increases to meet the ₹300 floor.
  • Southern states like Andhra Pradesh, Tamil Nadu, and Karnataka, already paying above ₹300, received minimal percentage hikes.
  • The Anoop Satpathy Expert Committee had recommended a national minimum wage floor of ₹375 per day in 2019.
  • The Congress's Shramik Nyay programme during the 2024 Lok Sabha campaign advocated for a national daily minimum wage of ₹400 for all workers.
  • The Parliamentary Standing Committee on Rural Development had also consistently recommended higher wages for rural employment guarantee workers.
  • Critics argue that the new wage notification is a "snub to India’s workers" and an "unwise economic policy" amidst rural wage stagnation.

Key Concepts Involved:

  • Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025: A new central legislation replacing MGNREGA to guarantee employment and livelihood in rural areas.
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005: A social security measure guaranteeing 100 days of wage employment in a financial year to adult members of rural households.
  • Floor Wage: The minimum wage rate set by the central government, below which no state can pay its workers.
  • National Minimum Wage: A uniform minimum wage applicable across all sectors and regions of a country, often based on expert recommendations.
  • Anoop Satpathy Expert Committee: An expert committee that recommended a national minimum wage floor of ₹375 per day in 2019.
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