3% DA hike for UP state govt employees: Yogi Adityanath's big announcement ahead of Diwali

Additionally, payment of arrears for the period between July and September 2025 will entail an additional burden of over ₹550 crore.

Uttar Pradesh chief minister Yogi Adityanath on Friday announced a 3% increase in the rate of dearness allowance and dearness relief for state employees and pensioners/family pensioners from 55% to 58%.

The revised allowances will be applicable from 01 July, 2025, Adityanath said on Friday.(HT Photos )

The revised allowances will be effective from July 1, Adityanath said on Friday, adding that the increased amount will be paid in cash starting this month.

“On the occasion of the great festival of Deepavali, this decision will serve as a catalyst for improving the standard of living while lighting the lamp of satisfaction, security, and prosperity in the lives of approximately 28 lakh dedicated workers and pensioners,” the Uttar Pradesh wrote in Hindi on X (formerly Twitter).

The state government will bear an additional expenditure of ₹1,960 crore until March 2026. Of this, ₹795 crore will be the extra cash outgo in November 2025, while ₹185 crore will be credited to the General Provident Fund (GPF) accounts of employees under the Old Pension Scheme, news agency PTI reported.

Additionally, payment of arrears for the period between July and September 2025 will entail an additional burden of over ₹550 crore. Beginning December 2025, the government will incur an average monthly expenditure of ₹245 crore to sustain the increased allowance.

Officials said the chief minister has directed that all eligible employees and pensioners receive the enhanced DA and DR benefits promptly, as part of the festive season relief.

Earlier, Odisha also announced a 3 per cent increase in dearness allowance of state government employees from from 55 per cent to 58 per cent to be implemented retrospectively from July 1, 2025.

The dearness relief (DR) for pensioners has also been increased by three per cent. The decision will benefit about 8.5 lakh government employees and pensioners in Odisha, the release said.

(With PTI inputs)