New Delhi | Jagran Business Desk: The Madhya Pradesh government, led by the Bharatiya Janta Party's Shivraj Singh Chauhan, is likely to announce a 5 per cent hike in the Dearness Allowance (DA) for the state government employees and pensioners, according to media reports.

In addition to the DA hike, the MP state government might also announce a hike in the Dearness Relief (DR) for pensioners. For this, the state's finance department has prepared a proposal, which has been sent to the CM office. The final decision on this matter rests with Chief Minister Shivraj Singh Chauhan.

The move comes after the Gujarat government announced an 11 per cent hike in DA for state government employees and pensioners with retrospective effect from July 1.

It should be noted that in 2020, the BJP government in Madhya Pradesh had stopped the implementation of a DA hike given by the Kamal Nath-led Congress government, days before it collapsed.

As of now, the Madhya Pradesh state government employees receive 12 per cent DA. Approximately 7 lakh employees will be benefited from the rise in DA if the proposal is approved.

Meanwhile, the Union government had raised DA for its employees from 17 per cent to 28 per cent in July this year. Since the state government usually follows Central DA rates and does revisions accordingly, many of them have increased the DA for its employees. It is also speculated that the Centre can further increase the rate of DA and DR for its pensioners.

For the unacquainted, DA is the cost of living adjustment allowance which the government pays to the employees of the public sector as well as pensioners of the same. In addition, DR is given to the government pensioners to compensate them for the rising cost of living due to inflation.

Posted By: Sugandha Jha