The Madhya Pradesh government has announced a hike in dearness allowance (DA) for its employees on the occasion of Diwali. The state government has increased the DA from 46% to 50%. This new DA will be effective from January 1, 2024. Information about this decision has been given in an official statement.
DA was also increased for central employees
This step has been taken at a time when just a few days ago the central government had increased the dearness allowance for its employees by 3%, making the dearness allowance of central employees 53%.
Chief Minister Mohan Yadav expressed happiness over this announcement and said my best wishes to all, as the happiness of this increase in DA has doubled with Diwali and State Foundation Day.
Undivided Madhya Pradesh was established on 1 November 1956 and on 1 November 2000 Chhattisgarh separated from it to become a new state.
Finance Department approval
Yadav said the state finance department had approved 46% DA in an order dated March 14, 2024, which was effective from July 1, 2023, and its arrears were given in installments. He said that now all government employees will get 50% DA from January 1, 2024.
Other states also announced
Recently, Uttar Pradesh, Assam, Telangana, and Arunachal Pradesh have also announced a hike in dearness allowance for their employees. This decision of the Madhya Pradesh government has not only provided financial relief to the employees but has also made this Diwali festival more special.
Do you know what is dearness allowance
Dearness Allowance (DA) is an allowance given to employees to reduce the impact of inflation. This allowance is usually one percent of the basic salary of the employee.
Importance of Dearness Allowance
Dearness allowance is very important for employees as it helps protect them from the effects of inflation. This is especially important for employees who have a low salary.
How is the dearness allowance calculated
The calculation of dearness allowance is based on various factors, such as the Consumer Price Index (CPI), inflation rate, and other economic indicators.
Benefits of dearness allowance
Dearness allowance has many benefits, such as:
Protects employees from the effects of inflation
Increases the purchasing power of employees
Boosts the morale of employees
Encourages employees to stay on the job
Disadvantages of dearness allowance
Although dearness allowance is beneficial for employees, it also has some disadvantages, such as:
Increases the cost of companies
Can increase inflation
Can increase government expenditure
The increase in dearness allowance by the Madhya Pradesh government is a good move for the employees. This move will help protect employees from the effects of inflation and increase their purchasing power.