Madhya Pradesh Raises Government Employees’ DA From 58% to 60%

The Madhya Pradesh government has increased the dearness allowance (DA) for its government employees from 58 per cent to 60 per cent, offering financial relief to lakhs of employees in the state. The decision has been issued through an order by the Finance Department.

Indore, 30 October 2026: According to the Finance Department’s order, employees covered under the seventh pay scale will now receive dearness allowance at the rate of 60 per cent. The increase is 2 percentage points over the earlier rate of 58 per cent.

The Finance Department circular states that the increased dearness allowance will be treated as payable from 1 January 2026 and as payable for the month of February 2026. The employees will receive the actual benefit of the increase with effect from 1 January 2026.

The government order makes it clear that following the 2 per cent increase, the total dearness allowance payable to employees will be 60 per cent. The decision is expected to provide economic relief to the state’s lakhs of government employees.

The government has also issued instructions regarding payment of the arrears. The benefit of the increased dearness allowance will be provided from 1 October 2026, with payment being made in November 2026.

The arrears for the period from 1 January 2026 to 30 September 2026 will not be paid to employees in a single instalment. The arrear amount will instead be released in 3 equal instalments.

The order states that the benefit of the increase in dearness allowance will be provided from November 2026, December 2026 and January 2027. The payment schedule has therefore been set out across these three months.

The government has made a special provision for employees who retired or died between 1 January 2026 and 30 September 2026. In such cases, the entire arrear amount will be paid in a single instalment either to the retired employees or to the nominated member in the case of employees who have died.

The order also specifies how the dearness allowance is to be calculated. Any amount of 50 paise or more will be added by rounding it up to the next full rupee. Any amount below 50 paise will be ignored.

It has also been clarified that no part of the dearness allowance will be treated as a part of salary for any other purpose.

The government has directed all departments to ensure that the expenditure arising from payment of the increased dearness allowance remains within the approved budget provision of the concerned department.