Key Points:
- 2% DA Hike for UP Employees: The Uttar Pradesh government has increased the Dearness Allowance (DA) for state employees from 53% to 55%, effective January 1, 2025.
- 16 Lakh Employees and 12 Lakh Pensioners Benefited: The hike will benefit 16 lakh state employees and 12 lakh pensioners, with arrears for January to March to be paid in May.
- Significant Financial Impact: The hike will add ₹107 crore to the monthly state treasury burden and ₹193 crore for arrears.
- Follows Central Government’s Lead: The move aligns with the recent 2% DA hike announced by the central government.
Lucknow: In a significant announcement, the Uttar Pradesh government, led by Chief Minister Yogi Adityanath, has approved a 2% hike in Dearness Allowance (DA) for state employees. Effective from January 1, 2025, this increase raises the DA from 53% to 55%, bringing financial relief to approximately 16 lakh state employees and 12 lakh pensioners. The arrears for the months of January, February, and March will be disbursed in May along with the April salary.
“A Timely Boost: DA Hike Brings Cheer to UP Employees”
The decision comes as a welcome move for government employees and pensioners amid rising inflation. Chief Minister Yogi Adityanath shared the news on social media, stating, “Protecting the interests of state employees is our top priority. Around 16 lakh employees will benefit from this decision. Hearty congratulations to all of you!”
The DA hike will apply to employees under various categories, including those in aided educational institutions, urban local bodies, and technical institutions. Contractual workers and those under UGC pay scales will also benefit from this revision.
“Financial Implications of the DA Hike”
The Uttar Pradesh government has estimated an additional monthly financial burden of ₹107 crore on the state treasury due to this increase. Furthermore, ₹193 crore will be allocated for arrears payments. For employees under the old pension scheme, ₹129 crore will be deposited into their General Provident Fund (GPF) accounts.
This timely revision aligns with the central government’s recent decision to raise DA by 2%, benefiting over one crore central employees and pensioners. Both hikes are calculated based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
“Regular DA Revisions in UP”
The Uttar Pradesh government revises DA twice annually:
- Announced in March-April (effective from January).
- Announced in October-November (effective from July).
Six months ago, in July 2024, the state had increased DA by 3%, raising it from 50% to 53%. This consistent revision ensures that employees’ purchasing power remains stable despite inflationary pressures.
“Central Government Sets the Precedent”
The recent DA hike mirrors a similar move by the central government under the 7th Pay Commission. Central employees saw their DA rise from 53% to 55%, effective January 1, 2025. This marks the final adjustment under the current pay commission as preparations are underway for implementing the 8th Pay Commission, expected in early 2026.
“Positive Sentiment Among Employees”
The announcement has sparked a wave of happiness among state employees and pensioners in Uttar Pradesh. With inflation impacting daily expenses, this hike provides much-needed financial relief. Employees eagerly await their revised salaries in May when arrears will also be credited.
