The Madhya Pradesh Cabinet has approved the long-awaited Transfer Policy 2025. The policy introduces a new four-tier slab system for transfers, replacing the earlier three-tier model. The transfer process will begin on 1 May and continue for 30 days.
The permissible quota for transfers has also increased from two to three per cent, providing greater flexibility to departments. Each department can frame its own policy and conduct transfers accordingly.
The Cabinet also cleared proposals related to employee benefits. These include a five per cent hike in Dearness Allowance (DA), to be paid in five instalments, and the formation of a committee to implement a Unified Pension Scheme (UPS) in line with the Central government’s system. These initiatives are expected to benefit around 7.5 lakh state- government employees.
Currently, employees receive 50 per cent DA, which will now increase to 55 per cent. Of this, three per cent will be effective from 1 July, 2024, and the remaining two per cent from 1 January, 2025. The arrears will be paid monthly from June to October 2025. This will impose an additional burden of Rs 3,500 crore on the state treasury.
The newly-formed pension committee, will work on establishing the process to implement the UPS in the state. Meanwhile, new rules have also been issued for ministers and department heads. All recommendation letters for transfers must be issued online by 30 May, based on priority and eligibility.
Priority will be given to cases involving couples posted in separate locations, employees with disabilities, and those with serious medical issues in the family. The revised slab system ensures stricter transfer caps based on cadre strength, preventing arbitrary decisions.
