India to introduce differentiated wage system for disabled, elderly and women under new rural jobs scheme

Dhirendra Kumar
4 min read26 Jun 2026, 11:55 AM IST
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The plan for higher inclusion under the scheme comes in the backdrop of conventional productivity benchmarks that often exclude vulnerable groups from fully participating in rural employment schemes.(PTI)
Summary
From 1 July, VB-GRAM G will link rural wages to worker capacity, overhaul MGNREGA framework and expand guaranteed employment to 125 days.

New Delhi: In a move to make India's flagship rural jobs scheme more inclusive, the government is set to roll out productivity norms for persons with disabilities (PwDs), allowing them to earn daily wages through work aligned with their abilities, two senior government officials said.

From 1 July, the scheme will have a separate vertical for persons with disabilities (divyangjan) and those with debilitating ailments and the elderly under the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-GRAM G, the officials said, highlighting the disability-friendly categories of work suited to specific abilities.

In special cases, these workers may be exempted from marking regular attendance or be allowed alternative attendance mechanisms, making it easier for them to participate in the scheme, the officials said.

The VB-GRAM G Act was enacted in 2025, replacing the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA). The scheme expands the statutory employment guarantee to 125 days from 100 days in MGNREGA. Its fiscal structure also marks a departure: while the Centre earlier bore 100% of the wage cost, under the VB-GRAM G, it will fund 60% in most states and 90% in the north-eastern and Himalayan states; with states covering the remainder.

The plan for higher inclusion under the scheme comes in the backdrop of conventional productivity benchmarks that often exclude vulnerable groups from fully participating in rural employment schemes.

“Through dedicated provisions for divyangjan, including divyangjan-friendly employment opportunities, priority livelihood assets and a separate schedule of rates aligned with individual capacities, the Act seeks to ensure dignity, economic security and meaningful participation,” said rural development secretary Rohit Kansal, one of the two government officials cited above.

Traditional productivity benchmarks have often excluded vulnerable groups from full participation. India has around 26.8 million persons with disabilities, nearly 70% of whom live in rural areas, according to the 2011 Census.

A differentiated schedule of rates (SoR) under the revamped rural job scheme will be rolled out, aligning productivity norms and work outputs with workers’ capacities, allowing them to receive the full notified wage without being disadvantaged, the officials said.

The specific daily wages for the PwDs are yet to be finalized. The proposed schedule of rates guarantees payment of the full notified daily wage, currently in the range of 241 -400 across states.

The divyangjan will not be required to work fixed hours to receive full daily remuneration, they said, adding that they will also be steered towards supervisory, support and livelihood-oriented roles rather than labour-intensive tasks.

Also Read | What do the draft VB–G RAM G rules mean for rural workers and states?

Under the new structure, households with divyangjan will be prioritized for beneficiary-oriented assets, with work allocated closer to their residence.

Special Gramin Rozgar Guarantee Cards will also be issued to divyangjan workers to help identify beneficiaries, track entitlements and allocate suitable work, the officials said. These job cards will carry a different colour from those issued to other workers.

VB-GRAM G aims to create livelihood-supporting infrastructure including skill development and training centres, work-sheds, self-help group buildings, livestock and fisheries infrastructure, rural markets, storage units and value-addition centres.

Also Read | The 0.01 trap: Can India escape the misery of jobless economic growth?

The policy shift has drawn the attention of labour rights experts, who say implementation will be critical. “It's a very good idea to have a different vertical for people with disabilities, with work and employment appropriate to their abilities,” said Nikhil Dey, co-founder of the Mazdoor Kisan Shakti Sangathan (MKSS).

He said funding and design will determine outcomes. “The main challenge will be ensuring adequate funds, training and proper work planning so that tasks are assigned according to their abilities, rather than productivity norms designed for able-bodied workers…" Dey said. "This was not done under MGNREGA. If it is done under VB-GRAM G, it would mean that this year's allocation would translate into roughly 5,000 crore,” he said.

The Centre has proposed a 1.51 trillion allocation for VB-GRAM G in FY27, of which 95,692 crore will be contributed by it. In FY25, the government had made the highest-ever allocation of 86,000 crore for MGNREGA, and the number was retained for FY26.

VB-GRAM G, notified earlier this year, is part of the government’s broader Viksit Bharat 2047 vision for development and it seeks to combine wage employment with asset creation and rural infrastructure development.

While policy attention to special needs is much needed, experts call out a key challenge in implementation. Shameer Rishad, a Bangalore-based disability rights expert, said identification will be a key bottleneck in implementation and targeting. “The government must first identify the number of persons with disabilities living in rural areas who are eligible to benefit from the revamped scheme. There should also be a clear definition and identification process for beneficiaries. Otherwise, the initiative could meet the same fate as many other welfare schemes run by the Centre and state governments.”

Employment under the rural jobs programme has been rising in recent month. It was at 1.74 crore persons in April, rising to 2.74 crore in May and 2.91 crore in June, according to official data as of 26 June.

About the Author

Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact.<br><br>Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India.<br><br>Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on uncovering under-reported trends, explaining policy shifts, and helping readers stay informed about developments that shape India’s economic landscape.

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