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MP Employees Warn of Black Diwali as Dearness Allowance Gap With Centre Persists at 2%

Employees protesting in Bhopal over dearness allowance demand (symbolic photo) (सांकेतिक चित्र)

Bhopal Bureau

With Diwali approaching, lakhs of government employees and pensioners in Madhya Pradesh are more angry than festive. The reason is the dearness allowance. The central government has raised the dearness allowance for its employees to 60 per cent with effect from January 2026, but state government employees in Madhya Pradesh are still receiving it at 58 per cent. This two-percentage-point gap has pushed employee unions onto the path of protest. The unions have warned that if the allowance is not raised before Diwali, employees will observe a black Diwali this year.

The warning was issued during a demonstration held on Thursday in front of the Government Central Press at Dak Bhavan in Bhopal. Office-bearers and workers of several employee organisations took part in large numbers, demanding that the government issue orders raising the dearness allowance and dearness relief at the earliest so that employees get relief before the festival.

A Two Per Cent Gap, Lakhs of Hopes

Umashankar Tiwari, provincial general secretary of the Class III Employees Union, said state employees are currently paid dearness allowance at 58 per cent, while the Government of India has been paying 60 per cent since January 2026. He said the two-percentage-point gap between the Centre and the state must be closed immediately.

The unions argue that inflation keeps rising and the prices of daily necessities are soaring. Any delay in raising the allowance directly hits the pockets of employees and their families. A hike before Diwali, they say, would bring major relief to households preparing for the festival. The organisations have demanded that the state government take a decision and issue orders before Diwali.

60 for Officers, 58 for Staff: Charge of Discrimination

The protest also raised a sharper charge. Tiwari said that All India Service officers posted in the state are already receiving dearness allowance at 60 per cent, while the state’s own employees are kept at 58 per cent. According to him, this is a double standard and the discrimination must end immediately.

The unions argue that if officers of the All India Services working in the same state can get the allowance at par with the Centre, there is no reason to keep state employees on a lower rate. The impact of inflation, they say, falls equally on every employee, so the allowance rate should be uniform too.

Drivers and Mechanics Join In

A notable feature of Thursday’s demonstration was that it was not limited to one organisation. Employees of the Vehicle Drivers and Mechanics Employees Union and several other organisations joined in large numbers, making it clear that the demand for a dearness allowance hike is no longer confined to one section but has become a shared demand of a large part of the state’s government workforce.

The protesters raised slogans and spoke of submitting memorandums in support of their demands. They said they have been conveying their demands to the government peacefully for a long time, but no concrete decision has come so far, which is why they have been forced to issue a stern warning like observing a black Diwali.

What Is Dearness Allowance and How Is It Fixed

Dearness allowance is the part of a government employee’s salary meant to offset the impact of inflation. It is fixed as a percentage of basic pay and is raised as prices rise so that employees’ purchasing power is protected.

At the Centre, the allowance is revised twice a year, with revisions taking effect from January and July, based on data from the All India Consumer Price Index for Industrial Workers. State governments usually follow the Centre’s decision with a proportionate hike for their own employees, though there is often a time lag. That is the situation in Madhya Pradesh: the Centre implemented the 60 per cent rate from January 2026, but the state is still running at 58 per cent.

Pensioners’ Dearness Relief Also Pending

The demand covers not just serving employees but pensioners too. The unions have sought a hike in dearness relief for pensioners alongside the allowance. Pensioners say the delay in relief, amid rising medicine and treatment costs, is a double blow for them.

Pensioner organisations have also appealed to the government to issue the dearness relief order before Diwali so that elderly pensioners can celebrate the festival in peace.

No Official Response From the Government Yet

So far, there has been no official statement or order from the state government on raising the dearness allowance. The unions say they have conveyed their demands to the administration several times, but a decision is pending. All eyes are now on whether the government acts before Diwali.

Pressure Before Diwali: What Next

The warning comes a day after demonstrations demanding a dearness allowance hike were held in Bhopal and district headquarters. Two consecutive days of protests make it clear that the issue is not cooling down.

The organisations have said that if the two-per-cent hike order does not come before Diwali, they will observe a black Diwali and intensify the agitation further. It remains to be seen what stand the state government takes on the employees’ demand before the festival.

Disclaimer: This report has been prepared on the basis of available sources and verification. Corrections will be published in case of any factual error.

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