Madhya Pradesh government to increase salaries for civil servants and pay overdue allowances
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Aaj Tak
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Madhya Pradesh government to increase salaries for civil servants and pay overdue allowances

Government employees and staff of Madhya Pradesh will receive good news: the government intends to increase their Dearness Allowance (DA) by 2 percent. This increase will affect not only future salaries but also the payment of arrears for the period from January to September.

However, the entire arrears amount for nine months will not be paid in a lump sum. The government plans to distribute this amount in equal parts over three payment periods. Furthermore, the increased Dearness Allowance will be included in the October salary, which will be disbursed in November.

The government plans to raise the Dearness Allowance for employees and officials by 2%. This increase will be effective from January 2026. The Dearness Allowance (DA) is an amount provided to government workers to compensate for the impact of rising inflation, calculated based on their basic salary. An increase in this allowance means an increase in the monthly salary of the workers.

Regarding the arrears for the period from January to September, the government will ensure the payment of these nine months' arrears in three equal monthly installments. Thus, workers will not receive the full amount at once but will receive it in stages over three months. On the other hand, the October salary will include a payment with the increased Dearness Allowance. The October salary will be received in November, allowing workers to start benefiting from the increased allowance in their regular pay.

This decision is not limited to working employees; it also extends to pensioners of Madhya Pradesh. The Dearness Allowance (DR) for pensioners will be increased by 2%. For pensioners, this increase will take effect from July 2026, leading to an increase in the Dearness Allowance they receive in their pensions. Thanks to this government announcement, both workers and pensioners will find relief. Workers will receive the arrears for the period from January to September in three parts, while the increased Dearness Allowance will be added to the October salary.

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Government Approves 3% Increase in Dearness Allowance (DA) for Central Government Employees
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Government Approves 3% Increase in Dearness Allowance (DA) for Central Government Employees

The government, led by Prime Minister Narendra Modi, announced significant news for central employees ahead of the festive season. The wait for the Dearness Allowance (DA Hike) for July concluded after the Cabinet meeting approved a 3% increase in DA, along with the allocation of ₹10,016 crore for this purpose.

Typically, the central government announces the DA hike for its employees and pensioners in September or October, effective from July. Although an announcement before Durga was expected, the government provided a major gift before Diwali.

The Cabinet approved a 3% increase in the Dearness Allowance (DA) for central government employees. Previously, in April of this year, the first DA/DR hike for employees and pensioners was announced, increasing the DA by 2% to 60%. Thus, thanks to the government's decision to raise DA by 3%, the overall Dearness Allowance for central employees reached 63%.

It should be noted that the central government increases the Dearness Allowance twice a year to help employees and pensioners cope with inflation. The DA/DR hike occurs in January and July.

Earlier reports suggested a 3% rise in DA. The decision on the Dearness Allowance increase is based on data from the All India Consumer Price Index for Industrial Workers (AICPI-IW). According to the Bureau of Labor data, AICPI-IW rose by 1.2 points in August 2026 to reach 154.4. Based on current data for July 2026, a DA increase of 3–4 percentage points is projected.

Calculating the salary increase for central employees after receiving this festive gift in the form of a 3% DA hike is quite straightforward. The article presents calculation examples for various basic salary levels: ₹18,000, ₹25,000, ₹40,000, and ₹50,000.

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