Overview

• Madhya Pradesh announced a 5% increase in Dearness Allowance (DA), aligning it with the central government rate of 55%.
• The hike will be implemented in two stages: a 3% increase effective July 1, 2024, and an additional 2% from January 1, 2025.
• Employees will receive arrears from the hike in five equal installments between June and October 2025.
• The decision imposes a fiscal burden of ₹175 crore on the state government, highlighting budgetary constraints.
• A cabinet committee has been formed to address promotion backlogs pending since 2016, with discussions underway with employee representatives.