Good news for MP government employees: Dearness Allowance to rise by 3% in January 2025

Sources reveal that the DA is likely to be raised by 3 percent starting January 2025, providing much-needed financial relief to employees and pensioners across the state.

In a move set to benefit over seven lakh state government employees, the Mohan government is preparing to announce a significant increase in Dearness Allowance (DA) as a New Year gift. Sources reveal that the DA is likely to be raised by 3 percent starting January 2025, providing much-needed financial relief to employees and pensioners across the state.

Previous DA increases and comparison with central employees

Earlier this year, the state government increased the DA from 46 percent to 50 percent in January 2024. However, this rate lags behind the DA provided to central government employees, who have been receiving 53 percent DA since July 2024. With the central government expected to further hike the DA in early 2025, the Mohan government seems keen to bridge the gap by aligning state employees' benefits closer to the central standard.

Historically, the state government followed the central government's lead in adjusting DA rates. However, delays in implementing these adjustments have recently become a concern, creating a disparity between central and state employees' allowances.

Impact on state employees and pensioners

The proposed 3 percent increase in DA will bring the total allowance for state employees to 53 percent, matching the current rate for All India Service officers, who saw their DA adjusted in July 2024. This adjustment will also include a provision for pensioners, ensuring financial parity across the board.

Employees have long awaited this increase, especially as rising inflation continues to erode purchasing power. The hike will not only improve disposable income but also boost morale among state employees, many of whom have raised concerns over delayed DA adjustments.

Budget provisions ensure smooth implementation

The state government has already made provisions for a 56 percent DA rate in its budget. This forward planning ensures that the establishment expenditure of various departments is adequately accounted for, eliminating any hurdles in implementing the proposed increase.

To address pending arrears, the government has outlined a structured payment schedule. The backlog of DA differences from January to September 2024 will be disbursed in four installments. Employees can expect the first installment in December 2024, followed by subsequent payments in January, February, and March 2025.

A step towards financial parity

This DA hike is part of the Mohan government's broader strategy to enhance employee welfare and reduce disparities between state and central employees. While state employees appreciate the initiative, they continue to urge the government to ensure timely implementation of future DA adjustments.