DA Hike: There is favorable news for the 750,000 government employees in Madhya Pradesh. A significant announcement is anticipated in the budget for the fiscal year 2025-26, which will be presented in the Madhya Pradesh Legislative Assembly on March 12. Reports indicate that a provision for a 14% dearness allowance may be included for government employees under the Mohan administration.
This provision will apply to the upcoming financial year, resulting in an increase of the dearness allowance to 64%. Additionally, the budget may also include a provision for an annual 4% increase in the salaries of contract employees.
State employees are receiving a dearness allowance of 50%
Currently, state employees are receiving a dearness allowance of 50%. It has been reported that following a potential increase by the Central Government in January 2025, the Mohan government may also raise the dearness allowance by 3%, bringing it from 50% to 53%. This adjustment will benefit the 750,000 state employees.
While the dearness allowance for All India Service officers in the state has been raised to 53% as of July 2024, state employees and pensioners continue to receive only 50%, leading to dissatisfaction among the workforce. If the central government raises the dearness allowance for its employees by 3%, it will reach 56%, creating a disparity of 3% in the dearness allowance.
The Central Government reviews the rates of Dearness Allowance and Dearness Relief for its employees and pensioners biannually, based on the half-yearly data from the All India Consumer Price Index. These adjustments are typically made every year in January and July, with announcements occurring around March and October.
Government to take big decision
Currently, central employees and pensioners benefit from a dearness allowance and relief rate of 53%. According to regulations, the dearness allowance rates are set to be revised again on January 1, 2025, contingent upon the AICPI Index data from July to December 2024, as assessed by the Ministry of Labor. An increase in the dearness allowance is anticipated during the upcoming Modi Cabinet meeting scheduled for Wednesday, March 12, after which DA will increase from 53 to 56 percent.