Lucknow, November 7, 2026 (Yes Punjab News)
The Uttar Pradesh government has increased dearness allowance (DA) for state employees by five percentage points, raising it from 58 per cent to 63 per cent ahead of Diwali.
The hike will benefit regular state government employees, full-time employees 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. The increased allowance will be paid along with November salaries. Arrears for the period from July 1 to October 31 will also be paid under the prescribed arrangements.
For employees covered under the General Provident Fund (GPF), the arrears will be deposited into their provident fund accounts, subject to prescribed limits and applicable income tax and surcharges. The deposited amount will remain in the accounts until November 1, 2027, with withdrawal permitted earlier only under specified circumstances and rules.
For employees covered under the National Pension System (NPS), 10 per cent of the arrears will be deposited into their Tier-1 pension accounts. The state government will contribute an additional 14 per cent of the arrears as the employer’s contribution.
The remaining 90 per cent will be deposited in Public Provident Fund (PPF) accounts or invested in National Savings Certificates (NSCs). Where NSCs are unavailable, the corresponding amount will be paid in cash.
The government has also made special provisions 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 due to retire within the next six months will receive their entire DA arrears in cash.
The decision is expected to provide financial relief to lakhs of employees across the state ahead of the festive season.
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