7th Pay Commission: Great news for state employees after this MP government announcement

7th Pay Commission: Great news for state employees after this MP government announcement

The Madhya Pradesh government recently announced a three per cent hike in the Dearness Allowance (DA) and Dearness Relief (DR) for state government employees under seventh pay commission recommendation. Madhya Pradesh is the sixth state to follow the Central government's footstep after it hiked DA and DR for government employee just before the announcement of Lok Sabha polls.

The Madhya Pradesh government has increased the DA by three per cent for more than seven lakh employees under the 7th Pay Commission recommendations.

The state finance department has ordered to increase the DA from January this year which will put an additional burden of Rs 1,647 crore to the exchequer.

The Central government had announced a hike of three per cent in the DA and DR for its employees and pensioners just before the announcement of the Lok Sabha polls.

Six states had recently increased the DA and DR for its employees from 9% to 12% are Uttar Pradesh, Bihar, Uttarakhand, Rajasthan, Jammu & Kashmir, Odisha. Of this five- UP, Bihar, Uttarakhand is ruled by the NDA government, whereas, Rajasthan has Ashok Gehlot-led Congress government. Jammu & Kashmir is currently under the President-rule. Odisha is governed by Naveen Patnaik-led BJD government.

The latest hike in DA and DR will produce an additional bill of Rs 1,100.94 crore for the Bihar government and benefit around more than four lakh state government.

For the Rajasthan government, it will cost an additional financial burden of Rs 1,435 crore and will benefit 8.5 lakh employees and 3.5 lakh pensioners overall.