State pensioners will soon receive the benefit of 55 percent inflation relief. However, the new rates will be implemented in September, so the pension will increase in their accounts starting in October.
MP Pensioners DR Hike 2025: There’s good news for millions of pensioners in Madhya Pradesh. Before Diwali, the Mohan Yadav government is preparing to give a gift to the state’s 450,000 pensioners. It’s reported that after receiving approval from the Chhattisgarh government, the MP government will increase pensioners’ dearness allowance by 2%. This will increase the DR rate from 53% to 55%. The new rates are expected to be implemented in September 2025, and the increased pension amount may be credited to their accounts starting in October.
Pensioners’ dearness allowance will increase by 2%; a proposal will soon be presented to the cabinet.
In fact, currently, state employees are receiving dearness allowance at the rate of 55 percent from January 1, 2025, while pensioners are being given dearness relief at the rate of 53 percent from March 2025. In this sequence, the Mohan government has now decided to increase dearness allowance by 2 percent from September 2025. For this, the Finance Department has also taken consent from the Chhattisgarh government and will soon prepare a proposal and place it in the Mohan Cabinet, where after getting approval, orders will be issued.
Consent from the Chhattisgarh government is required for an increase in DR.
In fact, Madhya Pradesh bears 74% of the financial burden of pension and relief for employees who retired before 2000, and Chhattisgarh bears 26%. Consequently, due to the constitutional obligation under Section 49(6) of the Madhya Pradesh State Reorganization Act, 2000, obtaining permission from the Chhattisgarh government is mandatory. Under the Act, unless both states agree on an increase in dearness allowance, pensioners are not granted increased dearness allowance. In Madhya Pradesh, the minimum pension for pensioners is ₹7,750 and the maximum is ₹1,10,000.
DR was increased by 3% in May.
Earlier in May, dearness allowance (DR) was increased for 4.50 lakh pensioners in the state. During this period, the MP government issued orders providing 53% dearness allowance under the 7th Pay Commission and 246% dearness allowance under the 6th Pay Commission to pensioners/family pensioners from March 1, 2025. Furthermore, it was decided to pay the arrears to the family members/nominees in one lump sum for retired/deceased government servants between January 1 and September 30, 2024. These rates were implemented from March 2025, and arrears were also received.
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