State-by-state DA hikes: Madhya Pradesh, Assam, and others raise allowance ahead of Diwali

The Madhya Pradesh government announced a 4% hike in Dearness Allowance (DA) for state employees on Monday, boosting DA from 46% to 50% of basic pay starting January 1, 2024. This increase, aimed at supporting employees with rising living costs, will be distributed retroactively in four installments over the current financial year.

The announcement comes as several other states, including Uttar Pradesh and Arunachal Pradesh, have recently introduced DA hikes for their employees. The Uttar Pradesh government confirmed a 3% DA hike effective July 1, while Arunachal Pradesh approved a similar increase, applicable from the same date, for regular employees and pensioners.

Last week, the Haryana government issued an order approving a 3% DA and Dearness Relief (DR) hike, elevating rates for employees and pensioners under the 7th Pay Commission from 50% to 53% of the basic pay. Effective from July 1, 2024, the enhanced DA and DR will be paid along with October salaries, with arrears for July through September to be paid in December.

Meanwhile, Assam's Cabinet approved a 3% DA hike for state employees on Sunday, which will bring the state’s DA rate to 53%, aligning with that of central government employees. Chief Minister Himanta Biswa Sarma announced that the revised DA would be applied retrospectively from July 2023, with arrears disbursed in four equal installments between January and April next year.

On October 16, the central government announced a 3% DA increase for central employees and pensioners, raising their DA to 53% of basic pay, effective from July 1, 2024.

Dearness Allowance, an inflation-linked adjustment to salaries, is calculated based on the All India Consumer Price Index (AICPI) and aims to counterbalance rising expenses.