Ahead Of Diwali, UP Hikes Dearness Allowance By 5% For Government Employees

The Uttar Pradesh government has announced a Diwali gift for state employees by increasing the dearness allowance (DA) by 5 per cent, raising it from the existing 58 per cent to 63 per cent.

The hike will benefit regular state government employees, full-time employees of aided educational and technical institutions, urban local bodies, acting employees, and those drawing salaries under the University Grants Commission (UGC) pay scale.

The revised DA rate will be effective from July 1, according to a government order issued on Saturday. The increased allowance will be paid along with the regular salaries for November.

The decision is expected to benefit lakhs of employees across the state, providing financial relief to various categories of government and aided institution employees.

According to the government order, provisions have also been made for the payment of arrears arising from the DA hike for the period between July 1 and October 31.

For employees covered under the General Provident Fund (GPF), the arrears will be deposited into their provident fund accounts, subject to the prescribed limits and after deduction of applicable income tax and surcharges. The deposited amount will remain in the accounts until November 1, 2027, with final withdrawal permitted under special circumstances as per the applicable rules.

For employees covered under the National Pension System (NPS), 10 per cent of the arrears will be deposited into their Tier-1 pension accounts. Additionally, the state government, as the employer, will contribute 14 per cent of the arrears to the respective Tier-1 accounts.

The remaining 90 per cent of the arrears will be deposited in Public Provident Fund (PPF) accounts or invested in National Savings Certificates (NSCs). In cases where NSCs are not available, the corresponding amount will be paid in cash.

The government has also made special provisions for retired and soon-to-retire employees. Those whose services ended before the issuance of the order, employees who retired between July 1, 2026, and the date of issuance of the order, and those scheduled to retire within the next six months will receive the entire amount of DA arrears in cash.

The decision is part of the state government's efforts to provide financial relief to employees ahead of the festive season.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)