
Madhya Pradesh has started the process of paying arrears for the 2% increase in dearness allowance (DA) and dearness relief (DR) for about 12 lakh state employees and pensioners. The IFMIS window for the process has been opened.

Following a news report by Dainik Bhaskar, the Commissioner, Treasury and Accounts, issued directions to all department heads, divisional joint directors and treasury officers to release the arrears. The DA was raised from 58% to 60% effective 1 January 2026.
The arrears for the nine months from January to September 2026 will be paid in three equal instalments in November 2026, December 2026 and January 2027. The arrears for October 2026 will be paid in cash. Employees will not receive the benefit before Diwali.
The state government has set a staggered payment schedule for the 2% DA arrears, stretching the payout over three months. The move means 12 lakh employees and pensioners will not see the full lump sum before Diwali, as the first instalment is due only this month. The finance department's directive to use specific IFMIS options for two different arrear periods suggests the system can handle both the current 2% hike and pending arrears from January 2024. The actual burden on the exchequer from these payments remains unspecified.
Source: bhaskar.com
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