Madhya Pradesh Hikes DA by 5% for 40,000 Sixth Pay Employees

The MP government's DA hike takes effect from April 2026 salary, with arrears covering July 2025 to March 2026 paid in six instalments — retired employees to receive lump sum.

The Decision

The Madhya Pradesh government has approved a 5 per cent hike in dearness allowance for nearly 40,000 state government employees and officers who draw salaries under the Sixth Pay Commission structure. The Finance Department issued formal orders in Bhopal on Wednesday, bringing immediate effect from the April 2026 pay cycle.

What Changes for Employees

With this revision, the dearness allowance for Sixth Pay employees rises from 252 per cent to 257 per cent of their basic pay. The benefit, however, is backdated — its effective date is 1 July 2025, meaning employees will receive nine months of pending arrears.

According to official orders, the arrear amount spanning July 2025 to March 2026 will be disbursed in six equal monthly instalments — in May, June, July, August, September, and October 2026.

Relief for Retired Staff

Employees and officers who retired between July 2025 and March 2026 will not be required to wait for instalments. As per the government's directive, this group is entitled to receive the full arrear amount as a one-time lump sum payment, sources in the Finance Department confirmed.

Seventh Pay Employees Already Covered

The state government had earlier raised the dearness allowance for employees under the Seventh Pay Commission by 3 per cent, taking their cumulative DA to 58 per cent. That increase was also implemented from April 2026 onwards, benefiting the larger share of the state workforce.

Wider Context

The back-to-back DA revisions are part of the Mohan Yadav-led government's broader effort to align state employee benefits with central government pay norms. Earlier this year, the administration announced a 3 per cent DA and dearness relief increase covering over 12 lakh employees and pensioners under the Seventh Pay structure.

Who Benefits and by How Much

The current hike directly benefits roughly 40,000 state employees still drawing salaries under the older Sixth Pay Commission framework. For a government employee with a basic pay of ₹20,000, the revised DA translates to an additional ₹1,000 per month — with arrears of approximately ₹9,000 to be paid out over six months.

What Comes Next

Finance department officials indicated that salary disbursement for April 2026 — reflecting the revised DA — is expected to be processed alongside regular May payroll. Employees are advised to verify their pay slips once issued to confirm the updated figures have been applied accurately, as per reports from the department.