DA Hike: The government has also decided to bear the arrears from July 2025 to March 2026. The arrears for this period will be paid in six equal installments, starting in May 2026. Pensioners will also receive dearness relief (DR) at the rate of 58 percent for January and February 2026.
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DA Hike: There’s significant good news for millions of state government employees and pensioners. Chief Minister Mohan Yadav has announced that state government employees will now receive a 58 percent dearness allowance (DA), similar to central government employees. This benefit will be effective April 1, 2026, and employees will receive the increased allowance with their May salaries.
When will the pending payments begin?
The most comforting aspect of this decision is that the government has also decided to bear the outstanding amount from July 2025 to March 2026. The arrears for this period will be paid in six equal installments, starting from May 2026. Pensioners will also receive dearness relief (DR) at the rate of 58 percent for January and February 2026.
The Kerala government has also given good news.
This move comes at a time when the Kerala government recently increased the DA for its employees by 10 percent, taking it to 35 percent. Furthermore, the Eighth Pay Commission has also intensified the movement. The Federation of National Postal Organizations (FNPO) has demanded that the Commission merge 50 percent of the DA into the basic salary. The organization says that in light of rising inflation, employees should be given interim relief starting January 1, 2026, to prevent the decline in their purchasing power.
What is DA?
Dearness Allowance (DA) is a portion of an employee’s salary that is paid to protect them from rising prices. It is revised every six months, in January and July. For example, if an employee’s basic salary is ₹40,000, a mere 3% DA increase would increase their salary by ₹1,200. This decision by the Madhya Pradesh government will directly improve the financial well-being of millions of families in the state.
What will be the impact of a 3% DA increase on their salary?
If an employee’s basic salary is ₹40,000, a 3% increase in DA would result in an additional ₹1,200 per month. This calculation applies only to the basic salary component and does not include other allowances such as house rent allowance (HRA) or travel allowance (TA). The impact of a 3% DA increase on different pay levels will be as follows…
For a basic salary of Rs 18,000, the monthly increase will be Rs 540 and the annual increase will be Rs 6,480. For a basic salary of Rs 25,500, the monthly increase will be Rs 765 and the annual increase will be Rs 9,180.
For a basic salary of Rs 35,400, the monthly increment will be Rs 1,062 and the annual increment will be Rs 12,744. If the employee’s basic salary is Rs 44,900, then his salary will increase by Rs 1,347 per month and Rs 16,164 per year. For a basic salary of Rs 56,100, the monthly increment will be Rs 1,683 and the annual increment will be Rs 20,196. If the basic salary is Rs 1,00,000, then the increase will be Rs 3,000 per month i.e. Rs 36,000 per year.
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