Uttar Pradesh Chief Minister Yogi Adityanath on Friday extended greetings to state government employees, pensioners, and their families after the UP government announced a 3 per cent hike in dearness allowance (DA) and dearness relief (DR) as a Diwali gift. In a post on X (formerly Twitter), he said that the decision would help in elevating the standard of living for 28 lakh dedicated workers and pensioners.

UP govt’s Diwali gift

“The Government of Uttar Pradesh has increased the rate of dearness allowance and dearness relief for state employees and pensioners/family pensioners from 55% to 58% effective from 01 July 2025,” he said in a post on X (formerly Twitter).

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He added, “On the occasion of the 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. Congratulations to all!”

Officials said that the revised DA, increased from 55 per cent to 58 per cent of basic pay, will take effect from July 1, 2025, and the arrears will be paid in cash starting October 2025. The move will benefit around 16.35 lakh employees and 11.52 lakh pensioners across the state.

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The officials said that the decision will place an additional expenditure burden of Rs 1,960 crore on the state exchequer till March 2026. Of this, Rs 795 crore will be disbursed in cash in November 2025, while Rs 185 crore will be deposited into the General Provident Fund (GPF) accounts of employees covered under the Old Pension Scheme.

In addition to this, payment of arrears for the period between July and September 2025 will add another Rs 550 crore to the expenditure. From December 2025 onwards, the state government is expected to bear an additional monthly expense of roughly Rs 245 crore due to the increase in DA.