DA Hike Update : Big news for state government employees. Employees in Madhya Pradesh have received some disappointing news. The central government has announced a 2 percent increase in the dearness allowance (DA), while state employees have been waiting for a 3 percent hike for the past nine months. Currently, central employees are set to receive a 53 percent DA starting July 2024, leaving Madhya Pradesh state employees feeling left behind.
Previously, state employees were already receiving 3 percent less DA compared to their central counterparts. They had hoped that the upcoming budget session would bring them a much-anticipated increase, but that did not materialize.
With the central government’s recent announcement of a 2 percent DA increase, the gap has widened. State employees are now at a 5 percent disadvantage, receiving only 50 percent DA, while central employees will enjoy a 53 percent DA from July 2024.
Historically, when the central government raised DA for its employees, the state government would follow suit for its own employees and pensioners. However, this time, despite the central increase occurring in March instead of the usual June-July timeframe, the state government has yet to take any action, leading to growing frustration among the employees.
The Union Cabinet recently approved a 2% hike in the dearness allowance (DA) for government employees, raising it from 53% to 55%. This update was reported by the Economic Times, citing sources. Notably, this is the smallest increase in the last several months. This adjustment falls under the Seventh Pay Commission, and the government has also set up the Eighth Pay Commission, with its recommendations expected to take effect in January 2026.
As per the Seventh Pay Commission’s guidelines, central employees receive a DA adjustment twice a year. The last adjustment occurred in July 2024, when the DA rose from 50% to 53%, marking a 3% increase. The latest decision reflects a 2% increase, applicable from January 2025 to June 2025.