UP DA Hike News: Diwali gift from the Yogi government; dearness allowance for UP employees increased by 3%..

UP DA Hike News: The Uttar Pradesh government has increased the Dearness Allowance (DA) by 3% for state government employees, staff in aided educational and technical institutions, regular and full-time employees of urban local bodies, work-charged employees, and those receiving salaries under the UGC pay scale.

These employees will now receive a Dearness Allowance of 63%, up from 60%. The revised rate will be effective from July 1, 2026. A government order to this effect was issued on Saturday. The increased DA will be paid along with the regular salary for November 2026. This decision by the government will benefit lakhs of employees across the state.

According to a government statement, the decision will benefit not only regular government employees but also staff in aided educational institutions, urban local bodies, and other eligible categories.

How will the arrears be paid?
The government order outlines specific arrangements for the payment of DA arrears—accrued between July 1, 2026, and October 31, 2026—for different categories of employees.

For employees covered under the General Provident Fund (GPF), the arrears (after the deduction of income tax and applicable surcharges) will be deposited into their respective GPF accounts. These funds will remain in the accounts until November 1, 2027.

Payment for employees covered under the NPS
For employees covered under the National Pension System (NPS), 10% of the arrears will be deposited into their Tier-1 pension accounts. Additionally, the state government—acting as the employer—will contribute an amount equivalent to 14% of the arrears into the same Tier-1 account.

The Tier-1 account serves as the primary pension account under the National Pension System (NPS), into which contributions are deposited by both the employee and the government (the employer). The remaining 90 percent of the amount will be deposited into the employee's Public Provident Fund (PPF) account or provided in the form of National Savings Certificates (NSCs). In the event that NSCs are not available, the corresponding amount will be paid in cash.

The government has made special provisions for employees who have already retired, those who have retired between July 1, 2026, and the date of the issuance of the government order, and those who are set to retire within the next six months. For these employees, the entire amount of the dearness allowance arrears will be paid in cash.

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