The Centre on Sunday announced payment of Rs 2 lakh to five-year-old Prince, who was rescued from a 60-foot pit into which he had fallen on Friday while playing.
Haryana Chief Minister Bhoopinder Singh Hooda, too, announced a payment of Rs two lakh to the boy.
Prince was back on surface after spending nearly 50 hours in the pit. He was kept alive by sending food and milk down the hole.
"It is a very happy feeling that the boy has been saved after struggling for life for nearly 50 hours. I wish him all the best in his life," Minister for State for Women and Child Development Renuka Chowdhary said after announcing the compensation.
The narrow pit had been left uncovered by labourers in Haldheri village on Friday when the incident took place.
Prime Minister Manmohan Singh had earlier announced that the government would take responsibility for the boy's "full medical care".