Over 70 million workers participating in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MG-NREGS) may not see an increase in their wages until the government formally initiates the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act of 2025, which is set to replace the previous UPA-era employment initiative, according to reports from The Indian Express.
This marks the first instance in over ten years that the government has not issued a revised wage notification for NREGS in the months of February or March.
Sources indicate that the Union Ministry of Rural Development (MoRD), which is responsible for overseeing the NREGS and launching the new VB-G RAM G scheme, has communicated to state officials that the wage rates for NREGS during the fiscal year 2026-27 will only be announced once the G RAM G is implemented. Until that time, the wage rates set for the fiscal year 2025-26 will remain in effect.
This information was conveyed to state government representatives in a recent video conference, as reported by a source familiar with the discussions.
“The notification of NREGS wages will occur when G RAM G takes effect; until then, the rates from the previous financial year will prevail,” the source noted.
The government establishes NREGS wage rates under subsection (1) of section 6 of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005. These new wage rates typically take effect from the start of the fiscal year on April 1. Traditionally, wage rates are announced before the new fiscal year begins, but this year, that has not occurred even two weeks into March. Over the past 13 years, wage notifications were consistently made in February or March.
NREGS wage rates are determined based on variations in the Consumer Price Index for Agricultural Labor (CPI-AL), which reflects inflation trends in rural areas.
As per data from the NREGS dashboard, there were approximately 11.03 crore active participants in the rural employment scheme as of April 14, 2026. In the fiscal year 2025-26, around 5.34 crore families (7.2 crore individuals) benefited from the NREGS.
In the previous year, the government announced NREGS wages on March 27, which were applicable for the fiscal year 2025-26, reflecting an increase of 2-7% compared to the prior year.
In December 2025, the National Democratic Alliance (NDA) government passed the VB-G RAM G Act, 2025, which aims to replace the long-standing MG-NREGA, 2005, with a new centrally funded program designed to provide unskilled employment in rural areas.
The opposition has voiced concerns regarding various aspects of the VB-G RAM G Act. Key points of contention include the fund-sharing structure (Section 22), normative allocations (Sub-section 5 of Section 4), and the temporary suspension of employment guarantees during peak agricultural seasons (Section 6). These provisions could also have financial repercussions for states, which are already grappling with economic challenges.
Differing from MGNREGA, the VB-G RAM G Act proposes a greater financial contribution from states towards the rural employment program. According to Section 22(1) of the VB-G RAM G Act, the fund distribution between the central and state governments will be 90:10 for 11 specific states and 60:40 for all other states. Under MGNREGA, the central government covered the entire wage cost and contributed 75% towards material and administrative expenses.
The government has yet to disclose a start date for the new scheme. In the interim, the MG-NREGS will remain operational, with an allocation of Rs 30,000 crore set aside in the Union Budget for 2026-27.
Furthermore, sources indicate that the Ministry of Rural Development has decided to approve a monthly labor budget for NREGS, outlining the number of person-days to be generated until the VB-G RAM G comes into effect. For April, a labor budget of 29.94 crore person-days has been approved, representing an 11% increase compared to 26.93 crore person-days for the same month last year.
Harikishan Sharma, a Senior Assistant Editor at The Indian Express National Bureau, specializes in governance, policy, and data reporting. His coverage includes the Prime Minister’s Office and key central ministries such as Agriculture & Farmers’ Welfare, Cooperation, Consumer Affairs, Food and Public Distribution, Rural Development, and Jal Shakti. He focuses on policy analysis and reporting, in addition to authoring a weekly column titled “STATE-ISTICALLY SPEAKING,” which delves into socio-economic, political, and electoral data, offering valuable insights into governance and societal issues.
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