Uttar Pradesh Chief Minister Yogi Adityanath has made a significant announcement ahead of Diwali, approving a 3% increase in the Dearness Allowance (DA) and Dearness Relief (DR) for state government employees and pensioners. This brings the total DA/DR rate from 55% to 58%. The revised allowances will be effective from July 1, 2025, and the increased amount will be paid in cash starting this month.
The Chief Minister stated that this decision is aimed at improving the standard of living and bringing satisfaction, security, and prosperity to the lives of nearly 28 lakh state employees and pensioners. The state government anticipates an additional expenditure of ₹1,960 crore until March 2026 to cover these enhanced benefits.
Of the total financial impact, ₹795 crore is expected as extra cash outgo in November 2025. Additionally, ₹185 crore will be credited to the General Provident Fund (GPF) accounts for employees under the Old Pension Scheme. The payment of arrears for the period between July and September 2025 alone will add over ₹550 crore to the government’s financial burden.
From December 2025 onwards, the government will be spending an average of ₹245 crore per month to maintain the increased allowance. Officials have confirmed that the Chief Minister has directed for the prompt disbursement of these enhanced benefits to all eligible employees and pensioners, ensuring they receive the festive relief without delay.
This development follows a similar announcement from Odisha, which also increased the dearness allowance for its state government employees by 3%, taking their DA from 55% to 58% retrospectively from July 1, 2025. The dearness relief for pensioners in Odisha has also seen a 3% hike, benefiting approximately 8.5 lakh employees and pensioners in the state.
Key Takeaways:
- 3% DA and DR hike for UP government employees and pensioners.
- New rate is 58%, effective from July 1, 2025.
- Estimated additional expenditure of ₹1,960 crore until March 2026.
- Payment of arrears for July-September 2025 to cost over ₹550 crore.
- Similar DA hike announced in Odisha.