Yogi Government Increases Dearness Allowance to 55% for UP State Employees, Over 16 Lakh Staff to Benefit
Lucknow, April 9, 2025 In a major relief for government employees, the Yogi Adityanath-led Uttar Pradesh government has approved a 2% hike in Dearness Allowance (DA), raising it from 53% to 55% of the basic salary. This much-anticipated move is expected to benefit over 16 lakh employees across the state and will be implemented retrospectively from January 1, 2025.
Three Monthsโ Arrears to Be Paid in May 2025 Salary
The hike will not only reflect in the April 2025 salary (disbursed in May) but will also include arrears for January to March 2025, providing a financial boost to employees. The DA revision aligns with the central governmentโs recent decision, ensuring that state employees continue to receive allowances at par with their central counterparts.
According to the Finance Department, the move was based on a proposal approved in response to the central governmentโs implementation of DA hikes under the 7th Pay Commission framework.
Beneficiaries Across Multiple Sectors
The enhanced DA will benefit a wide range of employees in the state including:
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Regular and full-time state government employees
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Employees of aided educational institutions
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Technical education institutions
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Urban local bodies
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Work-charged employees
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Personnel drawing salaries under UGC pay scales
This decision extends the financial benefits across administrative, educational, and municipal sectors in Uttar Pradesh.
Financial Impact on the State Exchequer
The DA hike will result in a monthly financial burden of โน107 crore starting from June 2025, with a one-time arrears payout of โน193 crore in May. Additionally, for approximately 12 lakh employees under the old pension scheme, an estimated โน129 crore will be deposited into their General Provident Fund (GPF) accounts.
This strategic decision, while adding to the financial load, is seen as a positive welfare move to address rising inflation and enhance employee morale.
