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UP government increases dearness allowance for state employees by 3 per cent

The hike will bring the total dearness allowance to 63 per cent for various categories of workers.

The Uttar Pradesh government on Saturday increased the dearness allowance (DA) by 3 per cent for several categories of workers, according to reports by Hindustan Times and The Pioneer. The hike applies to state employees, staff at aided technical and educational institutions, work-charged staff, those on UGC pay scales, and full-time, regular employees of urban local bodies.

The new rate of 63 per cent, up from 60 per cent, will be effective from July 1, 2026. A government order regarding the increase was issued on Saturday.

The enhanced allowance will be paid out alongside the regular salary for November 2026. A press statement from the state government said the decision will benefit lakhs of employees across the state, providing relief to regular staff and those in aided institutions and urban local bodies.

Specific arrangements have been made for the payment of arrears accrued between July 1, 2026, and October 31, 2026. For employees under the General Provident Fund (GPF), arrears will be credited to their GPF accounts after income tax and surcharge deductions.

For those under the National Pension System (NPS), 10 per cent of the arrears will go into Tier-1 pension accounts, with the state government contributing an additional 14 per cent. The remaining 90 per cent will be provided via National Savings Certificates or deposited into a Public Provident Fund account.

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