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UP Govt Approves 2% DA Hike for State Employees from January 2025

Written by: Team Angel OneUpdated on: Apr 11, 2025, 2:04 PM IST
The Uttar Pradesh government has approved a 2% Dearness Allowance hike for state employees and pensioners, effective January 1, 2025, impacting 28 lakh beneficiaries.
UP Govt Approves 2% DA Hike for State Employees from January 2025
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The Uttar Pradesh government has announced a 2% hike in Dearness Allowance (DA) for its state employees. The allowance has been revised from 53% to 55% of the basic pay. This change will come into effect from January 1, 2025, and will be reflected in the April 2025 salary, which will be disbursed in May 2025.

Impact on Employees and Pensioners

As per the news reports, the DA hike will benefit around 16 lakh state government employees. In addition, approximately 12 lakh pensioners will receive a 2% increase in Dearness Relief (DR). The announcement was made by Chief Minister Yogi Adityanath through social media.

“Today, it has been decided by the Uttar Pradesh Government to increase the Dearness Allowance being given to the State employees at the rate of 53% to 55% from 01.01.2025. Around 16 lakh employees will benefit from this decision,” he posted in Hindi. “Hearty congratulations to all of you!” he added.

According to an official spokesperson, the hike, approved by Chief Minister Yogi Adityanath, will place an additional monthly burden of ₹107 crore on the state treasury. The state government will disburse ₹193 crore as arrears in salaries and deposit ₹129 crore in the GPF accounts of employees under the old pension scheme.

Central Government’s DA/DR Revision

Before this, the Union Cabinet had approved a similar 2% hike in DA and DR for central government employees and pensioners, also effective from January 1, 2025. This revision increases the rate from 53% to 55%, impacting 48.66 lakh employees and 66.55 lakh pensioners. The combined annual financial implication for the central government is estimated at ₹6,614.04 crore.

The DA and DR revisions are calculated based on the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW) released by the Labour Bureau.

Other States: Assam and Maharashtra

On April 4, 2025, Assam Chief Minister Himanta Biswa Sarma announced a 2% hike in DA for state employees and pensioners. The increase will also be effective from January 1, 2025, with the revised amount to be added before Bihu. Arrears will be cleared in April and May.

In March 2024, the Maharashtra government announced a 12% DA hike under the 5th Pay Commission’s unrevised pay scale. The hike, from 443% to 455%, took effect from July 1, 2024, and is being disbursed with the February 2025 salary, including arrears from July 2024 to January 2025. Around 17 lakh employees were covered under this revision.

Conclusion

The 2% increase in DA in Uttar Pradesh aligns with similar revisions across other states and the Centre. The hike will apply from January 2025 and is set to benefit both current employees and pensioners.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Apr 11, 2025, 2:04 PM 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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