Madhya Pradesh Announces 3% DA Hike to 58%; 10 Lakh Employees, Pensioners to Benefit

The Madhya Pradesh government has approved a 3% increase in Dearness Allowance (DA) for its employees and pensioners, taking the total DA to 58% under the Seventh Pay Commission. The decision, taken at a cabinet meeting chaired by Chief Minister Mohan Yadav, is expected to benefit around 7 lakh employees and 3 lakh pensioners.

The hike will be effective from July 1, 2025, and will impose an additional annual burden of ₹2,450 crore on the state exchequer.

DA Hike Details and Arrears Payment

With this revision, state government employees under the Seventh Pay Commission will now receive DA at 58%, while those under earlier pay structures will see proportionate adjustments.

Arrears for the period from July 1, 2025, to March 31, 2026, will be paid in six instalments, starting May and concluding in October 2026.

For retired or deceased employees, arrears for the period between January 1, 2025, and March 31, 2026, will be paid in a lump sum.

Additionally, pension relief has been aligned with the DA hike, with pensioners under the Seventh Pay Commission receiving 58% relief, while those under the Sixth Pay Commission will receive 257%.

Fiscal Impact and Additional Approvals

The DA revision will cost the state government approximately ₹2,450 crore annually, reflecting the growing fiscal commitment towards employee compensation.

Alongside the DA hike, the cabinet approved several welfare and development initiatives. These include the ‘Shaurya Sankalp Training Scheme 2026’ aimed at preparing Other Backward Class (OBC) youth for recruitment in armed forces and security services. The scheme will train around 4,000 candidates annually, with stipends of ₹1,000 for male trainees and ₹1,100 for female trainees.

The government also cleared infrastructure and welfare projects, including investments in rural housing, transport, public works, and food distribution systems.

Read more: Finance Ministry Clears 25% KMA Hike for Railway Staff Ahead of 8th Pay Commission.

Conclusion

The 3% DA hike offers financial relief to lakhs of employees and pensioners in Madhya Pradesh, helping them cope with rising inflation. However, it also adds to the state’s fiscal burden, highlighting the balancing act between welfare spending and financial discipline.

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