UP CM approves 3 per cent DA hike for 28 lakh employees, pensioners

Uttar Pradesh Chief Minister Yogi Adityanath on Thursday approved a 3 per cent hike in dearness allowance (DA) and dearness relief (DR) for around 28 lakh state government employees and pensioners .

With this revision, the DA and DR will rise from 55 per cent to 58 per cent of basic pay, effective from July 1, 2025, according to an official statement. The increased amount will be paid in cash starting October 2025.

The chief minister described the move as a sensitive step aimed at providing relief from inflation and improving the living standards of employees and pensioners. He emphasised that the decision reflects the government’s commitment to their welfare.

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

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