More than one lakh contract-based officers and employees in Madhya Pradesh are set to receive a salary increase after the state government approved a 4.46 per cent revision in their remuneration.
The Finance Department issued an order implementing the annual increment under the state’s Contract Employment Policy, bringing relief to a large section of the contractual workforce. The revised remuneration will be effective from 1 April, 2026, with eligible employees also receiving arrears for the intervening period.
The increase has been determined in accordance with provisions of the Contract Employment Policy notified by the General Administration Department in July 2023. Under the policy, contract employees are entitled to an annual remuneration revision linked to changes in the Consumer Price Index (CPI).
For 2026, the state government has fixed the increment rate at 4.46 per cent, higher than the 3.87 per cent increase granted to contract employees last year under the same mechanism.
The revision is expected to translate into an increase of approximately Rs 1,000 to Rs 2,500 in monthly remuneration, depending on employees’ existing salary levels and categories.
However, not all contractual employees in the state are likely to benefit from the latest order. While Madhya Pradesh has an estimated 1.5 lakh contract-based employees working across departments, officials indicated that the salary hike would primarily apply to those employed in departments that have adopted the provisions of the 2023 contract employment policy.
As a result, around one lakh contract employees and officers are expected to receive the enhanced remuneration, while those serving in departments where the policy has not yet been implemented may remain outside its ambit.
Employee associations have welcomed the decision but have urged the government to extend the CPI-linked annual increment mechanism to all contractual staff, irrespective of their department.
The latest revision is expected to provide financial relief to a significant section of Madhya Pradesh’s contract workforce while reinforcing the state’s commitment to the annual remuneration framework introduced under the 2023 policy.