After Assam government’s Dearness Allowance (DA) hike announcement, the Madhya Pradesh government has announced a 4 percent hike in DA for state government employees. After the DA revision, the current dearness allowance for government employees of MP has gone up from the current 46 percent to 50 percent.

The revised DA amount will be effective from January 1, 2024. This means, from January 1, all government employees will get DA at the new rate of 50 percent while the arrears will be paid in four equal instalments.

Meanwhile, bringing the much needed festive joy to the employees, the Assam Cabinet, led by Chief Minister Himanta Biswa Sarma, has approved 3 percent hike in DA, effective from July 2023. After the hike, the DA will increase from 50 percent to 53 percent, which is at par with the DA of central government employees.

Meanwhile, on October 16, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three percent (3%) over the existing rate of 50% of the Basic Pay/Pension, to compensate against price rise.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.  The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum.

This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.