64% DA plan misses March deadline:Finance Dept roadmap falters, 12 lakh employees likely to wait longer

The Madhya Pradesh Finance Department will not be able to provide 64% Dearness Allowance (DA) under the 7th Pay Commission in the current financial year, as per its earlier declared plan. According to the latest announcement, the DA hike was granted to state employees and officers eight months after the Centre’s decision. Meanwhile, the Union government is preparing to announce another DA hike soon. In such a scenario, MP employees may have to wait again to receive benefits at the newly declared rates. The state government provides DA and Dearness Relief (DR) to around 7.5 lakh regular officers and employees and approximately 4.5 lakh pensioners — totaling nearly 12 lakh beneficiaries. In the current inflationary phase, they may have to wait another four to six months to receive the promised 64% DA. The delay is attributed to the state government’s decision to grant the recently announced 3% hike with April salaries, payable in May. Even if the Centre increases DA in March, the state is unlikely to implement it immediately. What was the finance department’s plan? Under the Finance Department’s roadmap, employees under the 7th Pay Commission were to receive: However, the current developments suggest that this structured plan is going off track. The plan holds political significance as well, since Assembly elections are scheduled for November–December 2028, during FY 2028–29. Current status contrary to plan Amid the rolling budget exercise, the state government had said six months ago that DA would be raised to 64% before the 2026–27 budget. However, this commitment has not been fulfilled. After an eight-month gap, the DA has increased from 55% to only 58%, instead of reaching the targeted 64%. The payment will also be made from April salaries, disbursed in May. Employee leaders had anticipated that the government would raise DA in two or three installments by Diwali 2025 and again in February–March 2026, ensuring the 64% target was met before March 31. Planning for 5th and 6th pay commission employees Six months ago, the Finance Department also outlined plans for employees under the 5th and 6th Pay Commissions. For 6th Pay Commission employees, DA was to be increased by 10% annually. Currently, they receive 252% DA, which will rise to 255% following the Chief Minister’s Holi announcement. The proposed roadmap is: Departments will need to allocate provisions accordingly in the rolling budget. Employees working in state undertakings, corporations, and boards are also expected to receive DA on similar lines. For 5th Pay Commission employees on deputation, the current DA rate stands at 315%, though this has not yet been implemented in the same manner as the 7th Pay Commission revisions. The planned structure proposes: Budgetary provisions are to be made accordingly. Employees say DA 6% behind target Umashankar Tiwari, General Secretary of the MP Third Class Employees Association, said that the government had promised 64% DA in FY 2025–26, but the recent 3% hike has only taken the total to 58%. “As a result, employees are still 6% short of the government’s own target,” he said, adding that the state should implement DA hikes immediately after the Centre announces them in the future. For now, however, nearly 12 lakh employees and pensioners in Madhya Pradesh will have to wait longer for the full 64% Dearness Allowance they were promised.