750,000 Employees to Benefit from Mohan Government's Major Decisions on Transfers, DA, and Pensions

Madhya Pradesh is on the verge of a new round of transfers. The Mohan cabinet has approved a new transfer policy that will directly benefit 7.5 lakh employees.

After a long wait, the Mohan Cabinet on Tuesday approved the Transfer Policy 2025. The transfer process will commence on May 1st and will last for 30 days. For the first time, four slabs have been created instead of three. The meeting, chaired by CM Dr. Mohan Yadav, increased the scope of transfers from 2% to 3%. Similar to the previous policy, departments are allowed to create separate policies and conduct transfers accordingly.

The Cabinet also approved proposals for the payment of arrears of increased DA to employees in five installments and the formation of a senior-level process determination committee to implement a unified pension scheme similar to the central government’s scheme. These proposals regarding transfer policy, DA, and pensions will benefit 7.50 lakh employees.

Committee to Determine Pension Process

The Mohan government is moving forward with implementing the Unified Pension Scheme (UPS) in Madhya Pradesh, similar to the central government’s scheme. A state-level committee has been formed for this purpose, with ACS Ashok Barnwal as its chairman. This committee will prepare the process for implementing the UPS and present it to the government.

₹3500 Crore Expenditure on DA

Employees currently receive a 50% dearness allowance (DA). With a 5% increase in DA, they will now receive 55%. A 3% DA increase was approved from July 1, 2024, and a 2% increase from January 1, 2025. The arrears will be paid in five installments from June 2025 to October 2025. This 5% DA increase will add an additional financial burden of ₹3500 crore on the government treasury.

Arrears to be Paid in Five Installments: The arrears of the increased 3% and 2% dearness allowance will be paid to employees in five installments. These installments will be paid in June, July, August, September, and October 2025.

Tightening of Regulations on Ministers

The Cabinet decided that by midnight on May 30th, departmental ministers, ministers in charge, and department heads must issue recommendation letters based on priority and eligibility after deciding on the received applications from employees. Only recommendation letters issued under the online process will be valid.

Key Priorities

Cases involving spouses where one partner serves in a different location will be prioritised to enable them to serve in the same location. Eligible disabled employees will be given first priority compared to general eligible employees. Humanitarian considerations will be given to employees and their family members who are ill.

Transfer Quota Increased

The previous transfer policy had three slabs; the new policy has four. If a department has 200 filled positions in a particular cadre, 20% of the employees can be transferred. For 201-1000 filled positions, 15% can be transferred; for 1001-2000, 10%; and for more than 2001, 5%. This slab system cannot be bypassed. The old policy had one slab (201-2000) with a 10% transfer allowance; this has now been divided into two.

Employee Transfers Based on Recommendations From:

Departmental Minister: Will decide on applications related to transfers from one district to another and issue recommendation letters.

Minister in Charge: Will decide on applications related to intra-district transfers.

Department Head: In some cases, applications will go to the department heads, who will forward them to the departmental minister or minister in charge for resolution.