State Employees to Receive 55% DA, Arrears in 5 Installments from June

On April 28, the Madhya Pradesh government announced an increase in the Dearness Allowance (DA) for the state's 7.30 lakh employees from 50% to 55%. The announcement was made by Chief Minister Dr. Mohan Yadav during the program of the Madhya Pradesh Gazetted Officers Association. The increase will place an additional burden of ₹175 crore on the state exchequer. The CM also mentioned that the long-standing demand for employee promotions, which has been pending since 2016, is being actively worked on to ensure that promotions for all employee categories are processed as soon as possible.

The CM also stated that an additional 3% DA would be provided for all government employees starting in 2024, with a further 2% increase starting from January 2025. The Dearness Allowance will now be equal to that of central government employees at 55%. The arrears amount will be paid in five equal installments from June 2025 to October 2025.

Regarding the promotions, the CM mentioned that the issue has been complex due to various factors, and the cabinet had formed a committee to find a resolution. He expressed optimism that, with the blessings of Lord Mahakal, promotions for all categories would begin soon, and the government will not only announce but also implement them at the earliest.

What is Dearness Allowance (DA)?

Dearness Allowance (DA) is provided to government employees and pensioners to compensate for the increase in the cost of living due to inflation. The rate of DA is determined based on the All India Consumer Price Index (AICPI), and it is updated every six months. DA helps maintain the standard of living of employees and pensioners despite inflation.

What is the All India Consumer Price Index (AICPI)?

In India, there are two types of inflation: retail inflation and wholesale inflation. Retail inflation is based on the prices that consumers pay for goods and services and is also known as the Consumer Price Index (CPI). The CPI is used to determine the DA rate for government employees.