Madhya Pradesh Employees: As the festival of lights approaches, employees in Madhya Pradesh may have reason to celebrate. The state government is reportedly considering increasing the dearness allowance (DA) for its seven and a half lakh employees just in time for Diwali. This move comes on the heels of the central government’s recent decision to raise DA and inflation relief for its employees and pensioners by three percent, bringing the total to 58 percent. The increase will be effective from July, meaning employees could receive a three month arrear along with their next salary.
How the Dearness Allowance Revision Works

Currently, the DA is being disbursed at a rate of 55 percent. Finance officials in the state have indicated that whenever the central government revises dearness allowance or inflation relief, states typically follow suit from the same effective date. With the central government increasing the DA and relief by three percent, Madhya Pradesh is expected to implement similar revisions for its employees. Orders for All India Services officers are expected to be issued by next week, while the state-level employee adjustments will be finalized through a cabinet meeting.
Pensioners to Benefit Alongside Employees
Chief Minister may announce the increase ahead of Diwali to provide employees with early festive cheer. Once the cabinet gives post-facto approval, the revised DA will be implemented. Pensioners currently receive inflation relief at a rate of 53 percent. Neighboring Chhattisgarh, for instance, recently approved a two percent increase effective from September, which will also be paid as arrears for the corresponding period.
Final DA Hike Before Eighth Pay Commission

This increase may be the last before the implementation of the eighth pay commission in January 2026. Under the new pay structure, allowances including DA will be integrated into the basic pay, effectively rendering separate DA payments redundant. However, the exact timing of the new pay scale’s implementation will depend on the state’s decision regarding the pay commission recommendations.
Disclaimer: This article is for informational purposes only. Employees are advised to check official government notifications for confirmation regarding dearness allowance and inflation relief.
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