Lottery held for UP government employees! Government increased DA by 2%, salary will increase

The Uttar Pradesh government has increased the Dearness Allowance (DA) for state employees by 2%, increasing it from 58% to 60% of the basic pay. Additional Chief Secretary of Finance Department, Deepak Kumar issued official orders for this amendment. This increase will directly benefit lakhs of state government employees and pensioners across Uttar Pradesh, providing them some relief from the rising cost of living. Dearness Allowance (DA) is an adjustment made according to changes in the cost of lifestyle, which the government gives to its employees and pensioners in addition to their basic salary.

To reduce the impact of inflation, it is revised from time to time, usually twice a year. This allowance is calculated as a percentage of basic pay; This means that the higher the DA percentage, the greater will be the actual increase in ‘take-home pay’ of employees across all pay categories. A 2% increase may seem nominal on paper, but given the huge workforce of Uttar Pradesh, one of India’s most populous states, its total financial burden on the state exchequer runs into hundreds of crores of rupees annually.

Increase in many states

The same pattern is generally adopted in the DA amendments of the state government, which the Central Government decides for its employees. The central government had earlier increased the DA for central employees, and after this the governments of many states like Bihar, Odisha and Tamil Nadu had also announced the same or almost equal increase for their employees. The move by the Uttar Pradesh government to increase DA to 60% is also in line with this broader trend. The revised DA will come into effect from the date mentioned in the orders issued by Deepak Kumar, Additional Chief Secretary, Finance Department. However, the exact date of its implementation and detailed information related to arrears were not immediately available.

Special things announced by Additional Chief Secretary Finance Deepak Kumar

1. State employees, employees of aided educational institutions, local bodies and employees working on UGC pay scale will get the benefit of increased DA.
2. Dearness allowance will be considered effective from January 1, 2026. Now employees will get DA at the rate of 60 percent on the basic salary.
3. Earlier the employees were getting 58 percent DA, which has been increased by 2 percent. The increased DA will be paid in cash along with the salary of May 2026.
4. The arrears from January 2026 to April 2026 will be deposited in the Provident Fund (GPF) account. For employees who do not have a GPF account, their amount will be deposited in the form of NPS/PPF or National Savings Certificate (NSC).
5. In case of employees covered under NPS, 10% of the arrear amount will be deposited in the Tier-1 pension account as employee contribution and 14% as state government contribution.
6. Employees who have retired by January 1, 2026 or are scheduled to retire by June 30, 2026, will receive the arrears amount in the form of cash payment.
7. Lakhs of state employees, teachers and pensioners of the state will benefit from this decision. After increasing DA by the Central Government, the UP Government has also implemented the increase at the same rate.