Uttar Pradesh Government Approves 2% DA Hike for State Employees, Benefiting 16 Lakh Personnel​

Under a major move to ease the financial crisis of its workforce, the Uttar Pradesh government released information of a 2% increase in Dearness Allowance (DA) for state employees. This hike in DA becomes effective from January 1, 2025, which makes it applicable that the DA be 55% (increase of 2% of 53%) of the basic pay.

It will also benefit approximately 16 lakh state employees and 12 lakh pensioners who will get a corresponding hike of 2% in the Dearness Relief (DR).

Implementation and Financial Implications

The DA will be revised and will impact the salary of April 2025 which is scheduled to be disbursed in May. Also, the April salary will be paid together with arrears for the months of January to March 2025.

The additional burden on the state exchequer arising from this increment is estimated to be ₹107 crore and arrears incurred are ₹193 crore. ₹129 crore will be deposited into the General Provident Fund accounts of employees working under Old Pension Scheme.

Chief Minister’s Statement

Yogi Adityanath, the chief minister of Uttar Pradesh, announced the decision on the X platform, known previously as Twitter, stating, ‘Safety of the interests of state employees is the utmost priority for the government.’ He said the top priority is protecting the interests of state employees.

Agreeing with that, the UP Government took a decision to enhance the Dearness Allowance from 53% to 55% from January 1, 2025. This will be beneficial for approximately 16 lakh employees. Congratulations to all of you!”.

Alignment with Central Government Policies

Following the suit of the Union Cabinet which recently approved a 2 per cent hike in DA for central government employees and a matching one in DR for pensioners, the Uttar Pradesh government has come up with a similar decision. The revision by the central government, also effective from January 1, 2025, increased DA/DR to 55 per cent of basic pay and this is applicable for around 48.66 lakh employees and 66.55 lakh pensioners.

Calculation of DA/DR Hikes

DA and DR hike is calculated as per the 12 month average of All India Consumer Price Index for Industrial workers (AICPI-IW) published by the Labour Bureau. Inflation and cost of living increases are usually accounted for every six months, in January and July, through these revisions.

Broader Impact

The DA hike will not only be to the state government employees but also to the employees of state aided educational and technical institutions and urban local bodies. The increased pay was meant to cushion off employees from the effect of inflation and increase living standards to ensure they are able to afford their basic needs.​

Conclusion

​In yet another proof of care for the employees and pensioners, the Uttar Pradesh government enhanced Dearness Allowance (DA) for state employees and pensioners by 2 percent from January 1, 2025. In this adjustment, the DA going up from 53% to 55% of basic pay means gain for about 16 lakh employees and 12 lakh pensioners.

The state hopes to offset the impact of inflation with its workforce by following the central government’s policies that also granted a 2% DA hike from the same date. The government’s implementation of this proactive measure is aimed at timely support of employees’ purchasing power in the face of climbing living costs.​