UP Govt Hikes DA by 3% Ahead of Diwali; CM Yogi Congratulates Employees and Pensioners

Lucknow: Uttar Pradesh Chief Minister Yogi Adityanath has approved a 3 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR) for approximately 2.8 million state government employees and pensioners.

The revision, which takes effect from July 1, 2025, will raise DA and DR from 55 per cent to 58 per cent of basic pay. The enhanced amount will be paid in cash starting October 2025.

What the DA Hike Means for Employees and Pensioners

Dearness Allowance is a cost-of-living adjustment meant to help employees and pensioners cope with inflation. With the new hike: an employee with a basic salary of Rs 10,000 will now receive Rs 5,800 as DA, up from Rs 5,500 earlier.

3% DA Hike Announced for Govt Employees Ahead of Diwali, Boosting Salaries and Pensions

Pensioners will also benefit from a similar 3 per cent increase in Dearness Relief. The hike applies to all eligible employees under both the Old and New Pension Schemes.

Officials said Chief Minister Adityanath described the move as a “sensitive step” to provide relief from inflation and to “improve the living standards of employees and pensioners.”

Financial Implications for the State

The DA and DR revision will have a substantial financial impact on the state exchequer. The Uttar Pradesh government is expected to spend an additional Rs 1,960 crore on this account until March 2026.

Of this total:

Rs 795 crore will be disbursed in cash in November 2025.

Around Rs 185 crore will be credited to the General Provident Fund (GPF) accounts of employees under the Old Pension Scheme.

Payment of arrears for the period from July to September 2025 will involve an extra Rs 550 crore.

From December 2025 onwards, the state will bear an average monthly expenditure of Rs 245 crore to sustain the increased DA and DR benefits.

Timely Relief Ahead of Diwali

Officials highlighted that the Chief Minister has directed prompt disbursement of the enhanced DA and DR, ensuring that employees and pensioners benefit from the hike in time for the festive season. The decision is being seen as part of the government’s efforts to support employees and pensioners amid rising inflation.

Uttar Pradesh cabinet approves hike in daily allowance from Rs 395 to Rs 500

The DA hike comes at a time when the state government is focusing on strengthening welfare measures for its workforce, reflecting a commitment to improving the financial well-being of employees and pensioners.

In Summary: The 3 per cent DA and DR increase by the Uttar Pradesh government will directly benefit millions of employees and pensioners, offering timely relief from inflation. With an additional financial outlay of nearly Rs 2,000 crore for the state, the move underscores the government’s effort to ensure better living standards for its workforce, particularly ahead of Diwali.