DA Hike by 5%, More than 7 lakh government employees are happy
DA Hike by 5%, DA Hike Update - In a significant move, Chief Minister Dr. Mohan Yadav has addressed another long-standing demand of approximately seven lakh regular officers and employees in Madhya Pradesh. During a conference held by the Gazetted Officers Association, he announced a 5% increase in the dearness allowance (DA), bringing it up to 55%, matching the DA rate given to central government employees.
The increase will be implemented in two phases: a 3% rise effective from July 1, 2024, and an additional 2% increase starting January 1, 2025. The arrears for this hike will be paid in five equal installments between June and October 2025. Naiduniya had earlier reported on April 26 that the DA would be increased by 5%.
Increase in Dearness Allowance: State Employees to Receive a Hike
The dearness allowance (DA) for state employees is currently set at 50 percent. This was announced in October 2024, and the arrears for the last nine months were paid in three installments. Meanwhile, the central government has raised the dearness allowance twice. Central government employees have benefited from this increase starting from July 2024 and again in January 2025.
On April 17, an order was issued to increase the dearness allowance for All India Service officers by 2 percent, bringing it up to 55 percent. For some time, there has been a demand to address the disparity in dearness allowances between central and state government employees. The recent budget has made provisions in the establishment expenditure of departments to account for a dearness allowance rate of 64 percent.
Finance department officials have mentioned that they will soon seek consent from the Chhattisgarh government to increase the Dearness Relief (DR) for pensioners by 5 percent. A formal letter will be sent for approval, and the increase will be implemented once the consent is received. According to Section 49 of the State Reorganization Act, both states must agree on financial matters related to pensioners before any changes can be made.
What is the new dearness allowance (DA) increase announced for Madhya Pradesh state employees?
The Chief Minister of Madhya Pradesh, Dr. Mohan Yadav, has announced a 5% increase in the dearness allowance (DA) for state employees, bringing it up to 55%. This hike is intended to align the state's DA with the central government’s rate. The increase will be implemented in two phases: a 3% rise effective from July 1, 2024, and a 2% increase starting January 1, 2025.
How will the arrears for the DA hike be paid?
The arrears for the DA increase will be paid in five equal installments between June and October 2025. These installments will cover the period from the implementation of the 5% DA hike. The payment schedule has been structured to ease the financial impact on the government while ensuring that employees receive their entitled dues for the increased DA.
When did the central government announce its DA hike, and how does it compare with the state’s DA?
The central government announced a DA hike twice: once in July 2024 and again in January 2025. The DA for central employees has been raised in a phased manner, and currently, their DA stands at 55%. The recent 5% increase for Madhya Pradesh state employees brings their DA in line with the central government’s rate, addressing a long-standing demand.
What is the provision in the budget regarding dearness allowance for government departments?
The recent state budget has made provisions in the establishment expenditure of various government departments, setting aside funds to account for a 64% dearness allowance rate. This is part of an effort to align the state’s dearness allowance with the growing inflation and cost of living, ensuring that employees are better supported financially in line with rising living expenses.
What steps are being taken to increase Dearness Relief (DR) for pensioners in Madhya Pradesh?
Officials from the Finance Department in Madhya Pradesh have stated that they will seek consent from the Chhattisgarh government to increase the Dearness Relief (DR) for pensioners by 5%. A formal letter will be sent to the Chhattisgarh government, and once consent is granted, the DR increase will be implemented. The process follows Section 49 of the State Reorganization Act, which requires joint approval from both states for financial matters related to pensioners.