UP announces 3 pc hike in dearness allowance for employees, pensioners
UP CM Yogi Adityanath said that the state government is devoted to the benefits of its employees and pensioners. He added that this decision marks compassion and respect for the workforce. He further said that the hike was as a sensitive step rolled out with an aim to provide relief from inflation and improve the living standards of employees and pensioners.
Lucknow: The Uttar Pradesh government on Thursday announced a hike of 3 per cent in the dearness allowance (DA) for 28 lakh employees and pensioners of the state government as a Diwali gift. This allowance will directly benefit 11.52 lakh pensioners and 16.35 lakh employees.
They will now receive DA at the rate of 58 per cent instead of the earlier offered 55 per cent of the basic pay from July 1, 2025. The hiked amount will be paid in cash from October 2025.
Diwali gift for employees
UP CM Yogi Adityanath said that the state government is devoted to the benefits of its employees and pensioners. He added that this decision marks compassion and respect for the workforce. He further said that the hike was as a sensitive step rolled out with an aim to provide relief from inflation and improve the living standards of employees and pensioners.
The CM also said that he was confident that "this Diwali gift will bring new energy, happiness, and prosperity to their lives”. The hike in DA will be an additional expenditure burden of Rs 1,960 crore on the UP exchequer till March 2026.
Benefits and arrears
Besides this, payment of arrears from July to September 2025 will add a burden of over Rs 550 crore. Out of this, Rs 795 crore will be the extra cash outgo in the month of November. Meanwhile, Rs 185 crore will be transferred to the General Provident Fund accounts of employees under the Old Pension Scheme.
Starting from December 2025, the UP government will spend an average of Rs 245 crore for the increased DA.