The Uttar Pradesh government has announced a Diwali gift for state employees by increasing the dearness allowance (DA) by 5 per cent, raising it from the existing 58 per cent to 63 per cent.
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.
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. The increased allowance will be paid along with the regular salaries for November. The decision is expected to benefit lakhs of employees across the state, providing financial relief to various categories of government and aided institution employees.
The revised DA rate will be effective from July 1, according to a government order issued on Saturday. Provisions have also been made for the payment of arrears arising from the DA hike for the period between July 1 and October 31, according to the government order. For employees covered under the National Pension System (NPS), 10 per cent of the arrears will be deposited into their Tier-1 pension accounts. Additionally, the state government, as the employer, will contribute 14 per cent of the arrears to the respective Tier-1 accounts.

