Uttar Pradesh government increases Dearness Allowance by five percent for state employees

LUCKNOW — The Uttar Pradesh government has announced a 5 percent increase in the Dearness Allowance (DA) for state employees and various eligible categories, raising the allowance from 58 percent to 63 percent.

According to the official government order issued on Saturday, the revised DA rate will take effect retrospectively from July 1, 2026. The decision coincides with the Diwali festival period and extends financial relief to a broad section of public sector personnel across the state.

The enhanced DA benefits cover regular state employees, employees of aided educational and technical educational institutions, regular and full-time workers of urban local bodies, work-charged employees, and holders of posts operating on the UGC pay scale.

Under the implementation schedule outlined by the administration, the increased dearness allowance will be disbursed alongside the regular salary for November 2026. Arrears covering the period from July 1, 2026, to October 31, 2026, will be distributed under specific accounting structures tailored to different employee pension schemes.

For employees enrolled under the General Provident Fund (GPF), arrear amounts, following the deduction of applicable income tax and surcharges, will remain deposited in their respective provident fund accounts until November 1, 2027.

For personnel covered under the National Pension System (NPS), 10 percent of the arrears will be credited directly to their Tier-1 pension accounts. The state government, acting as the employer, will contribute an additional amount equivalent to 14 percent of the arrears into the Tier-1 account. The remaining 90 percent of the arrear sum will be disbursed through Public Provident Fund (PPF) accounts and National Savings Certificates (NSC).

The government order further specifies that employees whose services concluded prior to the issuance of the directive, those who retired between July 1, 2026, and the date of the order, as well as individuals scheduled to retire within the next six months, will receive their full dearness allowance arrears in cash.