TV
In a major relief for government employees, the Uttar Pradesh government has announced a 2 per cent hike in Dearness Allowance (DA), raising it from 53 per cent to 55 per cent. The hike, effective from January 1, 2025, will benefit nearly 16 lakh state government employees and around 2 lakh pensioners, who will receive a corresponding increase in Dearness Relief (DR).
What is Dearness Allowance?
Dearness Allowance is a cost-of-living adjustment allowance paid to government employees and pensioners to cushion the impact of inflation. It is revised twice a year, in January and July based on changes in the Consumer Price Index (CPI). The allowance helps maintain employees' purchasing power despite rising prices.
Following Centre’s Footsteps
The move by the Yogi Adityanath-led government comes shortly after the central government approved a similar 2 per cent DA hike for its employees, bringing their DA to 55 per cent. More than 1 crore central employees are set to benefit from that decision. Now, several state governments, including UP, are following suit.
What’s Next for UP Employees?
The enhanced DA will be reflected in the upcoming salary and pension bills. This increase is expected to ease financial pressure on employees, especially amid rising household expenses. It also signals the state's continued effort to support its workforce ahead of the next budget planning phase.
As a result, the government will incur an additional financial burden of Rs 107 crore in May 2025 and Rs 193 crore for arrears payments.
Additionally, Rs 129 crore will be deposited into the General Provident Fund (GPF) for employees covered under the Old Pension Scheme (OPS). For the entire financial year, this expenditure will amount to Rs 107 crore per month.
With the Uttar Pradesh government's decision to raise the Dearness Allowance to 55 per cent, nearly 18 lakh employees and pensioners will directly benefit from increased financial support. By aligning with the Centre's recent DA hike, the state demonstrates responsiveness to inflationary pressures and a commitment to its workforce. As the revised allowance gets reflected in upcoming pay and pension cycles, UP government employees can expect some relief in their monthly expenses. This move not only acknowledges their service but also sets the tone for continued policy measures aimed at employee welfare in the months to come.
