Bhopal: The Madhya Pradesh government has decided to increase the dearness allowance (DA) for its employees and officers by 2 per cent, Chief Minister Mohan Yadav announced on his X handle on Friday, October 30, IANS reported from Bhopal.

Source: IANS via hi INDiA

The hike will be effective from January 2026 and is set to benefit lakhs of state government staff. The enhanced DA will be disbursed in cash beginning with the salary for October, which is payable in November.

Arrears for the nine months from January to September will be paid in three equal monthly instalments, a structure the government says is aimed at managing the fiscal impact on the state exchequer without burdening a single payment cycle, Nation Press reported in its account of the announcement.

Source: Nation Press

Pensioners covered from July

Pensioners will also benefit from the decision: their dearness allowance will be increased by 2 per cent, effective from July 2026. The government said it remains committed to safeguarding the interests of both serving employees and retired personnel, and that the welfare of retired employees remains a priority.

Employees across departments including education, health, police and revenue are expected to receive the revised rates. The decision follows a recent Central government DA hike for its own employees, and officials said the state increase is in line with the formula linked to the All India Consumer Price Index.

Further official orders detailing the exact rates and implementation modalities are likely to be issued by the Finance Department to facilitate smooth disbursement across all departments. Chief Minister Yadav reiterated that the state government is committed to ensuring employees and pensioners receive their due benefits without undue delay.