MP contract employees to receive hike in salary:Finance Dept approves 4.46 percent increase for over one lakh workers statewide

More than one lakh contract-based officers and employees in Madhya Pradesh will receive a salary hike after the state Finance Department issued an order on Monday approving a revision in their remuneration. Under the order, the remuneration of eligible contract employees and officers has been increased by 4.46 percent, higher than last year’s annual revision. The increase has been approved in accordance with the state’s contract employment policy. The revised salaries will be effective from April 1, 2026, and employees will also receive arrears for the intervening period. Increase based on consumer price index The remuneration revision has been implemented under the provisions of the state’s Contract Employment Policy issued by the General Administration Department on July 22, 2023. The policy provides for an annual increase in the remuneration of contract employees based on the Consumer Price Index (CPI). In line with this provision, the state government has fixed the annual increment rate at 4.46 percent for 2026, effective from April 1. Last year, contract employees received a remuneration increase of 3.87 percent under the same formula.
Contract employees’ union welcomes move, seeks wider implementation The state president of the Madhya Pradesh Contractual Employees and Officers Federation (Madhya Pradesh Samvida Karamchari-Adhikari Mahasangh) welcomed the decision but urged the government to extend the benefit to employees working in departments where the 2023 contract policy has not yet been implemented. The association argued that all contract employees across departments should receive the annual remuneration revision based on the Consumer Price Index, regardless of their department. Only one lakh employees expected to benefit Although Madhya Pradesh has approximately 1,50,000 contract-based officers and employees working across various departments and positions, not all of them are expected to benefit from the latest remuneration hike. Officials said the increase would apply primarily to employees working in departments that have adopted the provisions of the 2023 contract employment policy. Since several departments have not yet implemented the policy’s CPI-linked remuneration revision mechanism, nearly 100,000 employees and officers are expected to receive the benefit, while the remaining contract staff may not be covered under the current order. The latest revision is expected to provide financial relief to a large section of the state’s contract workforce and reinforce the annual increment mechanism introduced under the 2023 policy.