Good news for contract employees in MP… Mohan Yadav government hikes salaries

Bhopal: The Madhya Pradesh government has announced a benefit for approximately 1.25 lakh employees and officers working on a contract basis. The Mohan Yadav government has approved a 4.46% hike in the annual remuneration of these contractual staff. This salary increase will come into effect from April 1, 2026. The decision was made based on the Consumer Price Index, in accordance with the state’s 2023 Contract Employment Policy.

Benefit for 1.25 lakh employees
According to the Madhya Pradesh Finance Department, the Mohan Yadav government approved the 4.46% annual hike for contractual employees and officers on Monday. This increase will be implemented starting April 1 of this year, benefiting around 1.25 lakh contractual staff. The hike has been implemented under the state’s Contract Employment Policy, which came into effect on July 22, 2023.

What will be the extent of the hike?
It is worth noting that the Contract Employment Policy includes a provision for adjusting annual remuneration based on the Consumer Price Index. Ramesh Rathore, President of the MP Contractual Officers and Employees Association, welcomed the Madhya Pradesh government’s decision. He stated that this adjustment would result in a monthly salary increase of approximately ₹1,000 to ₹2,500, depending on the pay scale.

Equal pay for similar contractual posts
According to the order issued by the Madhya Pradesh Finance Department, the salary hike for contractual employees this time is higher than the previous instance. The annual hike rate has been set at 4.46% starting April 1 of this year, whereas it was 2.94% last year. It is worth noting that prior to the 2023 policy, remuneration for similar contractual posts varied across different departments. This policy standardizes the pay for identical contractual roles across all departments.

Demand Raised by the Employees’ Union
Under the new policy, the monthly remuneration for contractual employees ranges from ₹21,800 for the post of peon to ₹70,000 for Assistant Engineers and Assistant Managers. The employees’ union has demanded that departments where the 2023 policy has not yet been implemented should also pay the revised, higher salaries to their contractual staff.