Explained: NREGS Wage Hike Halted for G-RAM-G Scheme Rollout
The Centre has delayed the annual wage hike for over 11 crore NREGS workers under MGNREGA for 2026-27 as it prepares to roll out the new Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) or G-RAM-G scheme. This is the first time in more than a decade that the revised wage notification has not been issued in February-March. Previous year’s rates will continue until the new scheme is implemented. This article explains what NREGS is, how wages are notified every year, what the new G-RAM-G scheme changes, why the hike is halted, its impact on rural workers and families, and all basic technical concepts behind the transition.
The Union Ministry of Rural Development has informed states that NREGS wages for 2026-27 will be notified only after the G-RAM-G scheme comes into force.
Over 11.03 crore active workers and 5.34 crore families who availed the scheme in 2025-26 will continue with the existing 2025-26 wage rates for now.
This is the first time in more than a decade that the Centre has not released the revised NREGS wage notification in February-March.
The new VB-G RAM G (G-RAM-G) Act, 2025, passed in December 2025, replaces the 2005 MGNREGA and aims to provide 125 days of guaranteed employment instead of 100 days.
Until the new scheme is fully operational, previous financial year’s wage rates will continue without any revision.
The delay is part of the smooth transition from MGNREGA to the new Viksit Bharat-aligned rural employment framework.
What is MGNREGA or NREGS and why was it launched?
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, is a legal guarantee of 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
It is also called NREGS (National Rural Employment Guarantee Scheme) in practice.
The Act was passed in 2005 and came into force in phases from 2006 to provide livelihood security in rural areas, reduce migration to cities, create durable assets and empower women through equal wages.
It is one of India’s largest social security schemes and is demand-driven — workers apply for work and the government must provide it within 15 days or pay unemployment allowance.
How are NREGS wages decided and notified every year?
Wages are fixed by the Central Government and notified every financial year by the Ministry of Rural Development.
The wage rate is linked to the Consumer Price Index for Agricultural Labour (CPI-AL) to protect workers from inflation.
Notification usually happens in February-March so that the new rates apply from April 1 (start of the new financial year).
States can pay higher wages but the Centre reimburses only up to the notified rate.
In the last decade, this notification was released every year without fail — until now.
What is the new G-RAM-G scheme and how is it different from MGNREGA?
G-RAM-G stands for Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin).
The VB-G RAM G Act, 2025, was passed in December 2025 to replace the 20-year-old MGNREGA.
Key changes include increasing guaranteed employment days from 100 to 125 per household per year.
It focuses more on skill development, asset creation, climate-resilient works and faster wage payments.
The new scheme aligns rural employment with the long-term Viksit Bharat 2047 vision.
Why has the Centre halted the NREGS wage hike for 2026-27?
The Ministry wants to notify the new wage rates only under the G-RAM-G framework once it is fully rolled out.
Continuing with the old rates during the transition period avoids confusion and legal issues.
This is a one-time administrative decision to ensure smooth shift from the old MGNREGA to the new law.
Workers’ rights remain fully protected and they continue to get work and wages as per the existing rates.
How many people are affected by this delay?
As on April 14, 2026, there are 11.03 crore active workers under the scheme.
In 2025-26, 5.34 crore families availed NREGS.
These workers will receive the same daily wage rates as notified for 2025-26 until the new notification comes.
The delay does not stop work or payment — it only postpones the annual revision.
What will happen once the G-RAM-G scheme is fully implemented?
The Centre will issue fresh wage notifications under the new Act.
Wages are expected to be revised according to the latest CPI-AL and other factors.
The scheme will bring better accountability, more days of work and improved livelihood support in rural areas.
The transition to the G-RAM-G scheme highlights the challenges of reforming rural employment programmes. In this context, examine the significance of wage revision in livelihood security and discuss how the new Viksit Bharat rural employment framework can strengthen rural economy while protecting workers’ rights.