There is good news for lakhs of pensioners in Madhya Pradesh. The Mohan Yadav government is planning to give a benefit to its 4.50 lakh pensioners before Diwali.
Reports say that after approval from the Chhattisgarh government, the MP government will increase the dearness allowance (DA) for pensioners by 2%. This will raise the DA from 53% to 55%. The new rates will likely start from September 2025, so pensioners could get the increased pension in October.
Currently, state government employees get a DA of 55% from January 1, 2025, while pensioners get 53% from March 2025. Now, the Mohan Yadav government has decided to increase the dearness relief by 2% from September 2025. The finance department has got approval from Chhattisgarh and will soon send the proposal to the Mohan Yadav cabinet.
Once the cabinet approves, the order will be issued.
Approval from Chhattisgarh Needed for DA Hike
Currently, Madhya Pradesh pays 74% of the pension and allowance costs for employees who retired before 2000, while Chhattisgarh pays 26%. Because of this, under Section 49(6) of the Madhya Pradesh State Reorganization Act, 2000, approval from the Chhattisgarh government is required.
According to the Act, the increased dearness allowance (DA) cannot be paid to pensioners until both states agree. In Madhya Pradesh, the minimum pension is ₹7,750 and the maximum is ₹1,10,000.
3% DA Hike Implemented in May
Earlier in May, the DA for 4.50 lakh pensioners in the state was increased. At that time, the Madhya Pradesh government issued orders for 53% DA under the 7th Pay Scale and 246% DA under the 6th Pay Scale for pensioners and family pensioners, effective from March 1, 2025.
It was also decided to pay arrears in a lump sum to retired or deceased government employees, or their nominees, for the period from January 1 to September 30, 2024. These rates were applied from March 2025, and arrears were paid accordingly.