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Uttar Pradesh Government Announces 3% DA, DR Hike for 28 Lakh Employees & Pensioners Ahead of Diwali

Written by: Team Angel OneUpdated on: 17 Oct 2025, 4:40 pm IST
UP raises Dearness Allowance and Relief rates from 55% to 58% for 28 lakh employees and pensioners, effective July 1, 2025, before Diwali.
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In a move to bring festive cheer, the Uttar Pradesh government has declared a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for 28,00,000 state employees and pensioners. Effective from July 1, 2025, the decision reflects the government’s commitment to supporting its workforce during the Diwali celebrations.

3% DA and DR Increase to Benefit 28 Lakh Beneficiaries

Chief Minister Yogi Adityanath has approved an increase in DA and DR from 55% to 58%, impacting approximately 28,00,000 current and former state government employees. The hike is applicable from July 1, 2025 and aims to enhance financial support to the stakeholders amidst rising living costs. CM Yogi referred to the move as a source of satisfaction, security, and prosperity for dedicated workers and pensioners.

Diwali Bonus for 14.82 Lakh Employees

Prior to announcing the DA and DR hike, the UP government also declared a bonus payout for 14,82,000 employees. The bonus is calculated based on 30 days’ emoluments and capped at ₹6,908 per eligible employee. This decision will result in an additional financial outgo of ₹1,022 crore for the state government, but is seen as a meaningful gesture during the festive period.

Other States Join in Festive Announcements

Rajasthan and Gujarat have also joined in with their own festive benefit plans. Rajasthan Chief Minister Bhajanlal Sharma declared an ad hoc bonus of up to ₹6,774 for approximately 6,00,000 employees. Gujarat followed with a similar bonus up to ₹7,000 for 16,921 Class-4 employees spread across various public institutions and government bodies.

Read More:DA Hike: Karnataka Government Increases Dearness Allowance by 2% Ahead of Diwali!

Financial Implications and Broader Impact

The series of announcements by state governments signifies a collective effort to provide for public sector employees during the inflationary period. These actions are expected to aid employees and pensioners in managing additional festival-related expenses effectively. With over 28,00,000 UP beneficiaries alone, the fiscal commitment underlines the government’s pledge toward employee welfare.

Conclusion

Overall, this 3% hike in DA and DR alongside the Diwali bonus reflects the Uttar Pradesh government’s proactive approach to supporting its workforce. As festive preparations begin, beneficiaries can expect improved financial cushioning to celebrate with greater ease and security.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Oct 17, 2025, 11:07 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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