Uttar Pradesh Government Raises DA for State Employees from 58% to 63% Ahead of Diwali

The revised allowance will benefit regular state government employees, full-time staff of aided educational and technical institutions, urban local bodies, acting employees and those drawing salaries under the University Grants Commission (UGC) pay scale.

According to a government order issued on Saturday, the revised DA rate will be effective from July 1, 2026. Employees will receive the increased allowance along with their regular November salaries.

Arrears from July to October

The government order also provides for payment of arrears accumulated between July 1 and October 31.

For employees covered under the General Provident Fund (GPF), the arrears will be credited to their provident fund accounts, subject to prescribed limits and deductions towards applicable income tax and surcharges. The deposited amount will remain in these accounts until November 1, 2027. Withdrawals before that date will be permitted only under specified circumstances and in accordance with applicable rules.

For employees enrolled in the National Pension System (NPS), 10 per cent of the arrears will be deposited into their Tier-I pension accounts. The state government, in its capacity as the employer, will make an additional contribution equivalent to 14 per cent of the arrears to the respective Tier-I accounts.

The remaining 90 per cent will be deposited into Public Provident Fund (PPF) accounts or invested in National Savings Certificates (NSCs). Where NSCs are unavailable, the corresponding amount will be paid in cash.

Cash Payment for Retired and Soon-to-Retire Employees

The government has also outlined special arrangements for retired and soon-to-retire employees.

Those whose services ended before the order was issued, employees who retired between July 1, 2026, and the date of the order, and those scheduled to retire within the following six months will receive their entire DA arrears in cash.

The increase is expected to provide financial relief to lakhs of employees across Uttar Pradesh during the festive season.