UP Government Approves 3% DA Hike for 28 Lakh Employees
In a major pre-Diwali announcement, Uttar Pradesh Chief Minister Yogi Adityanath has approved a 3% increase in dearness allowance (DA) and dearness relief (DR) for approximately 28 lakh state government employees and pensioners.
Key Takeaways
- DA/DR increases from 55% to 58% of basic pay
- Benefits 28 lakh government employees and pensioners
- Effective from July 1, 2025 with cash payments starting October 2025
- Additional financial burden of Rs 1,960 crore on state exchequer
Financial Implications and Payment Schedule
The DA hike will cost the state government an additional Rs 1,960 crore until March 2026. The breakdown includes:
- Rs 795 crore extra cash outgo in November 2025
- Rs 185 crore credited to GPF accounts under Old Pension Scheme
- Over Rs 550 crore for July-September 2025 arrears
- Rs 245 crore monthly expenditure from December 2025 onward
CM Yogi emphasized this decision reflects the government’s commitment to employee welfare and aims to provide inflation relief while improving living standards.
Bonus Announcement for 2024-25
In a separate festive gift, the UP government has approved productivity-linked bonuses for the financial year 2024-25, benefiting 14.82 lakh employees at a cost of Rs 1,022 crore.
The bonus will be calculated based on maximum monthly emoluments of Rs 7,000, equivalent to 30 days’ emoluments, amounting to Rs 6,908 per employee.
