The employees of Madhya Pradesh will now receive increased transport and house rent allowances. The state's 7.5 lakh employees will benefit from the new allowances with their April salary. The proposal for increasing the allowances was approved in a Cabinet meeting chaired by Chief Minister Dr. Mohan Yadav on April 1.
This is the first time since 2016 that the state government has increased the house rent allowance. Until now, employees were receiving allowances based on the 6th Pay Commission, but now the allowances will be adjusted according to the 7th Pay Commission.
With the new rates coming into effect, the expected increase in monthly salary will be ₹800 for Class IV employees, ₹1,000 for Class III employees, ₹2,600 for Class II employees, and ₹3,000 for Class I officers.
In the Cabinet meeting, it was also decided that under the 7th Pay Commission, house rent allowances will be 10% for Class A cities like Bhopal, Indore, Gwalior, and Jabalpur, 7% for Class B cities, and 5% for Class C and D cities.
Minister Kailash Vijayvargiya mentioned that this increase in allowances will result in an annual financial burden of ₹1,500 crore on the state government. This increase in allowances is seen as a New Year gift to the employees of Madhya Pradesh.
Additionally, the Cabinet has revised the rates for other allowances such as daily allowances, vehicle allowances, mileage allowances, and relocation allowances. Special allowances for certain employees have also been doubled.
Employees posted in the headquarters of Bhopal, Indore, Gwalior, and Jabalpur will now receive ₹384 per month as transport allowance, which was previously ₹200. Similarly, employees with disabilities will now receive ₹671 instead of ₹350 per month as allowance.