Uttar Pradesh Government Increases Dearness Allowance by 2% to 55% for State Employees
On Wednesday, the Uttar Pradesh government announced that it will increase the Dearness Allowance (DA) for its employees by 2%. This means the DA will go up from 53% to 55% of the basic salary. The new DA rate will be applicable from January 1, 2025.
Chief Minister Yogi Adityanath shared this news on the social media platform X (formerly Twitter). He said that taking care of state employees is the government’s top priority.
He said:
“Today, the Uttar Pradesh government has decided to increase the DA from 53% to 55% from January 1, 2025. Around 16 lakh state government employees will benefit from this decision. Congratulations to all!”
Central Government Had Also Announced DA Hike Earlier
This decision by the UP government comes shortly after the central government also increased the Dearness Allowance and Dearness Relief (DR) for its employees and pensioners. The central government approved a similar 2% hike, raising DA and DR to 55% of the basic salary, starting from January 1, 2025.
This move by the central government will benefit:
- 48.66 lakh current central government employees, and
- 66.55 lakh pensioners.
According to an official report, this DA/DR hike will cost the central government around ₹6,614.04 crore per year.
How is DA/DR Calculated?
The DA (for employees) and DR (for pensioners) are increased based on the average All India Consumer Price Index for Industrial Workers (AICPI-IW) over 12 months. This index is released by the Labour Bureau and shows changes in the cost of living.
What’s Coming Next?
This increase in DA and DR is happening just before the expected formation of the 8th Pay Commission. The Pay Commission is responsible for reviewing and recommending changes in salaries and pensions of central government employees.
