Diwali bonanza: Madhya Pradesh government hikes DA to 50 percent for employees

The Madhya Pradesh government on October 28 announced that it has increased Dearness Allowance (DA) to 50 percent from 46 percent for its employees ahead of Diwali. The hike will be effective from January 1, 2024. 

Chief Minister Mohan Yadav said, “My congratulations to everyone as this joy of enhancement in DA has doubled as it has coincided with Diwali and the state's Foundation Day on November 1.” 

Yadav said the state finance department approved 46 percent DA in an order dated March 14, 2024. It was effective from July 1, 2023, and the arrears were paid in instalments. 

“Now all government servants will be given 50 percent DA from January 1, 2024,” he said. 

Madhya Pradesh was constituted on November 1, 1956 and Chhattisgarh was carved out of it on the same date in 2000. 

The Centre recently hiked the dearness allowance (DA) by 3 percent for central government employees. The Union Cabinet on October 16, 2024, approved an additional installment of Dearness Allowance (DA) to Union government employees and Dearness Relief (DR) to pensioners to compensate price rise.  

The emoluments will be effective July 1 amounting to an increase of 3 percent over the existing rate of 50 percent of the basic pay/pension to adjust the cost of living and to protect erosion of the pay’s real value. 

Dearness Allowance (DA) is a percentage of an employee's basic salary intended to mitigate the effects of inflation on their living expenses. This allowance is regularly adjusted, typically every six months, to correspond with fluctuations in the cost of living index.