Diwali bonanza: Madhya Pradesh government hikes dearness allowance by 4%

Madhya Pradesh Chief Minister Mohan Yadav on Monday, October 28, announced an increase in the dearness allowance (DA) by 4 per cent effective January 1, 2025, newswire ANI reported. The chief minister said that from January 1, 2024, onwards, the dearness allowance for MP employees would be given at the rate of 50 per cent.

Congratulating MP employees, Mohan, according to ANI said, “There are two occasions: Diwali and the foundation day of Madhya Pradesh. It is our responsibility to take care of the employees. 46 per cent dearness allowance has been approved and has been made effective since July 1, 2023. Arrears have been given in instalments. Now, from January 1, 2024, dearness allowance will be given at the rate of 50 per cent.”

Announcing a further four per cent increase in dearness allowances from January 1, 2024, CM Mohan Yadav said, “The congratulation gets doubled as there are two occasions Diwali as well as the foundation day of Madhya Pradesh. On November 1, 1956 Madhya Pradesh was formed and we are working to take the state and country forward.”

In a post on social media platform X (formerly known as Twitter), Mohan wrote, “Arrears will be paid in four equal instalments in this financial year.” He further announced plans for November 1 and said the state is preparing for Madhya Pradesh Foundation Day, which will add flavours to the Diwali festival. He said that the day reminds the people of Madhya Pradesh of the establishment of “our state and our glorious past”.

What is Dearness Allowance?

Dearness Allowance refers to a fixed portion of an employee's basic salary designed to help offset the effects of inflation on living expenses. Typically, this allowance is adjusted every six months to correspond with fluctuations in the cost of living index.