Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Friday announced a 4 per cent hike in the dearness allowance (DA) for state government employees. The decision comes ahead of upcoming state Assembly elections scheduled later this year. Chouhan made the announcement during his speech at a mass marriage function held in Gillor village of the Sehore district of Madhya Pradesh.
"At present, there is a difference of 4 per cent dearness allowance between central and state government employees, now we have decided to increase the dearness allowance of state employees by 4 per cent to end this difference," Madhya Pradesh Chief Minister Shivraj Singh Chouhan said.
The upcoming Assembly elections for the 230-member Assembly in Madhya Pradesh are expected to take place in November of this year. Following the results of the 2018 elections, the assembly ended up in a hung situation, with the Congress emerging as the largest party with 114 seats, while the BJP secured 109 seats.
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Initially, the Congress formed a government under the leadership of senior politician Kamal Nath. However, the government faced a collapse in March 2020 after a revolt by MLAs loyal to Jyotiraditya Scindia. Subsequently, Shivraj Singh Chouhan from the BJP returned as the Chief Minister.
Earlier on March 24, the central government hiked the dearness allowance for its employees and pensioners from 38 per cent to 42 per cent. After this, the government of Uttar Pradesh also hiked the dearness allowance for its pensioners and employees by 4 per cent.
Last month, Punjab Chief Minister Bhagwant Singh Mann announced the hike in the interest rate on the due amount of Dearness Allowance of state government employees.
The amount of dearness allowance is calculated on the basis of multiplying the current rate of DA and basic salary. Suppose your basic salary is Rs 29,000 and DA is 42 per cent, then your DA formula will be (42x 29200)/100. Similarly, dearness relief is also calculated for pensioners.