In a major announcement, the Uttar Pradesh Government has increased the Dearness Allowance (DA) by 2% for state employees. This decision comes after the central government made a similar move. The new DA rate will now be 55%, up from the previous 53%.
This increase will provide financial relief to nearly 16 lakh government employees in the state.
Effective From January 2025
The DA hike will be applicable from January 1, 2025. Employees will also receive arrears for January, February, and March, which will be paid along with their April salary in May 2025.
This will boost employees’ income and help them cope with rising inflation.
Government Spending to Rise
The increase in DA will lead to extra spending by the state government:
- ₹107 crore per month from June 2025
- ₹193 crore will be spent on arrears
- ₹129 crore will be deposited into GPF accounts for employees under the Old Pension Scheme (OPS)
Who Will Benefit?
This decision will benefit a large group of employees, including:
- Regular government employees
- Staff of aided educational and technical institutions
- Employees in urban local bodies
- Work-charged employees
- Employees under UGC pay scales
These workers will now see a direct increase in their salaries, improving their quality of life.
Why Is DA Important?
The Dearness Allowance is meant to help employees fight inflation. It is revised twice a year — on January 1 and July 1.
The hike is calculated based on the Consumer Price Index (CPI-IW), which reflects the average price rise over 12 months. As inflation rises, so does the DA.
This increase ensures that government employees continue to receive fair compensation for their efforts, even when prices go up.
DA Calculation Formula
For central government employees:
DA% = [(Average AICPI (Base year 2001 = 100) – 115.76) / 115.76] × 100
For public sector employees (last 3 months average):
DA% = [(Average AICPI – 126.33) / 126.33] × 100
Conclusion: A Supportive Step by UP Government
This 2% DA hike is a positive step by the Yogi Adityanath government. While it will add financial pressure on the state, it offers significant relief to employees dealing with inflation.
The decision is being welcomed by government workers, and they hope similar supportive measures will be taken in the future.
