Uttar Pradesh government raises dearness allowance for state employees

LUCKNOW — The Uttar Pradesh government has announced a hike in the dearness allowance (DA) for state employees, raising it from 58 percent to 63 percent ahead of Choti Diwali.

According to an official order issued by Principal Secretary Alok Kumar, the enhanced DA will take effect retrospectively from July 1, 2026. The increased allowance will be paid in cash starting with the regular salary for November 2026.

The decision benefits regular state employees, staff of aided educational and technical institutions, regular and full-time employees of urban local bodies, work-charged employees, and holders of UGC pay scales.

Under the terms of the government order, arrears for the period between July 1 and October 31, 2026, will be credited to the General Provident Fund (GPF) accounts of employees, subject to statutory income tax and surcharge deductions. The arrears deposited in the GPF will remain locked until November 1, 2027, and cannot be withdrawn prior to that date under normal circumstances.

For employees covered under the National Pension System (NPS), 10 percent of the arrears will be deposited into the employee’s Tier-1 pension account, while the state government will contribute an equivalent 14 percent. The remaining 90 percent of the arrears will be provided in the form of a Public Provident Fund (PPF) or National Savings Certificate (NSC).

The government has also made provisions for cash payouts of the full arrears to specific categories of personnel. Employees whose services terminated before the issuance of the order, those who retired between July 1, 2026, and the date of the order, and personnel scheduled to retire within the next six months will receive their total dearness allowance arrears in cash.