UP announces 3% DA hike for employees and pensioners ahead of Diwali

Uttar Pradesh Chief Minister Yogi Adityanath has approved a 3 per cent hike in dearness allowance (DA) and dearness relief (DR) for 2.8 million state government employees and pensioners, news agency PTI reported.

The revision raises DA and DR from 55 per cent to 58 per cent of basic pay, with effect from July 1, 2025. The increased amount will be paid in cash starting October 2025, the state government said.

What this means for employees

Dearness allowance is a cost-of-living adjustment paid to government employees and pensioners to help offset the impact of inflation. The new hike means:

-An employee with a basic salary of Rs 10,000 will now receive Rs 5,800 as DA instead of Rs 5,500 earlier.

-Pensioners will get a similar 3 per cent rise in their Dearness Relief.

-The hike will apply 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 outgo for the state

The revision will cost the Uttar Pradesh government an additional Rs 1,960 crore till March 2026.

Of this, about Rs 795 crore will be disbursed in cash in November 2025, while another Rs 185 crore will be credited to the General Provident Fund (GPF) accounts of employees under the Old Pension Scheme.

The payment of arrears for July–September 2025 will involve an additional Rs 550 crore.

From December 2025 onwards, the state will bear an average monthly burden of Rs 245 crore to sustain the increase.

Officials said the Chief Minister has directed that the enhanced DA and DR benefits be paid promptly, ensuring employees receive the hike as part of Diwali-season relief.

The decision follows the central government’s recent 3 per cent DA hike for its employees and pensioners, effective July 1 2025. The decision raised DA from 55 per cent to 58 per cent.