The Madhya Pradesh government has provided a piece of good news to its employees by raising the DA for its employees up to 9 percent. This is again straining the ex-chequer and the raise will be a Diwali gift for the employees it is estimated to benefit lakhs of people in the state.
What’s New?
The DA has been increased from 230% to 239%. This means per diem rates for the employees will be increased, which will now enhance allowances for the employees. This increase is to be implemented from January 1, 2024, so the impact will be observed from employee salaries from November 2024.
Details of the Increase
- The new DA will be paid to the employees coming under the sixth pay scale regarding their basic pay structure.
- The proposed raise will add an extra ₹620 to ₹7,000 to employees’ pay depending on their wages.
- The change will happen from January 2024 but the payment will commence from the salary of November 2024 onwards.
How Will the Payment Work?
The arrears for the period from January 1, 2024, to September 30, 2024, will be paid in four installments:
- First installment: December 2024
- Second installment: January 2025
- Third installment: February 2025
- Fourth installment: March 2025
The proof lies understandably in its staggering formula, according to which employees receive at least the arrears amount over the following months.
Retirement/Death Benefit
Those employees who retired or died between January and September 2024 shall be paid their arrears in one installments. All of this will be paid to either the workers their selves or their families to help in the hard times.
Why Is This Happening?
This decision has come at time when many organizations employee have been calling for it for so long. The Madhya Pradesh government has paid heed to these demands and met the need sso that the employees get a deserving hike in their remuneration.