MP govt increases dearness relief for pensioners:55% DR approved from September 1, no mention of arrears, 170 crore burden on state exchequer

Madhya Pradesh increases dearness relief for pensioners 55% DR approved from September 1, no mention of arrears, 170 crore burden on state exchequer In a recent decision, the Madhya Pradesh Cabinet under CM Mohan Yadav has approved an increase in dearness relief (DR) for pensioners. Around 4.5 lakh pensioners in the state will now receive 55% DR, up from the previous 53%. Following the cabinet decision on Tuesday, the Finance Department issued the official order on Wednesday. While the DR hike is confirmed, the order does not mention any payment of arrears. Pensioners are likely to face losses due to the non-payment of the eight months’ pending amount. It is assumed that, as in previous cases, arrears may not be provided. This has raised concerns among pensioners. 6th and 7th Pay commission benefits clarified According to the order, those under the Sixth Pay Commission will get an additional 6% DR, while those under the Seventh Pay Commission will receive a 2% increase. The benefit is effective from 1 September 2025. Additional burden of ₹170 crore on state budget The increase in pension and family pension will result in an added financial burden of approximately ₹170 crore on the state government during this financial year. The payment for the revised dearness relief will be reflected in the pensions disbursed in October. The cabinet had given its approval on 14 October, and the Finance Department has confirmed implementation from 1 September. Applicable to retired employees of various state bodies This new order will also apply to retired employees and officers of the state government who took lump sum payments upon absorption into state undertakings, autonomous institutions, corporations, and boards.