Bhopal, April 2 – The Madhya Pradesh Finance Department issued orders on Thursday to government employees, stating that the Dearness Allowance (DA) in the state has been increased by three percent.
As a result of this increase, employees will now receive a total DA of 58 percent, up from the previous 55 percent.
The Finance Department has announced that government employees will receive the arrears resulting from the increase in DA – covering the period from July 1, 2025, to March 31, 2026 – in six equal installments.
These installments will be disbursed in May, June, July, August, September, and October 2026.
According to the state government's decision, the new DA rate will be effective from July 1, 2025.
However, the actual disbursement of this revised allowance will begin in April 2026, with the payment included in the salary for May 2026.
This move is expected to directly benefit hundreds of thousands of government employees in Madhya Pradesh.
The arrears resulting from the increased DA – covering the period from July 1, 2025, to March 31, 2026 – will not be paid to employees as a lump sum; instead, they will be paid in six equal installments.
These payments will be made between May and October 2026.
This approach ensures that the state government does not face an immediate, heavy financial burden, while government employees continue to receive the funds on a regular basis.
In an order issued by the State Finance Department, it has been clarified that government employees who retired or passed away between July 1, 2025, and March 31, 2026 – or their nominees – will be paid the full amount of arrears in a lump sum.
Special provisions have been made for government employees who have retired or passed away during this specific period.
In such instances, the entire amount of the arrears will be disbursed as a lump sum to the concerned employee or their designated nominee.
The state government has also laid down specific rules regarding the disbursement of the Dearness Allowance.
If the calculation results in a fractional amount of 50 paise or more, it will be rounded up to the nearest whole rupee; conversely, any amount less than 50 paise will be disregarded.
It has also been explicitly clarified that, under no circumstances, the Dearness Allowance will be considered a component of the Basic Pay.
The State Finance Department has issued directives to ensure that the additional expenditure resulting from the Dearness Allowance hike remains strictly within the approved budgetary allocations of the respective departments.
This measure aims to prevent any undue financial strain on the state's fiscal framework.