StatesUttar Pradesh
Uttar Pradesh raises dearness allowance by 3 points to 63% ahead of Diwali
The enhanced allowance applies from July 1, 2026, and will come with November salaries, with four months of arrears from July to October paid under separate rules for each fund type.
Key points
- Dearness allowance for Uttar Pradesh state employees rises from 60% to 63%, effective July 1, 2026.
- The higher rate will be paid with the November 2026 salary, and arrears cover July 1 to October 31.
- Arrears are split by fund type: GPF, NPS and retiring employees are treated differently.
The Uttar Pradesh government on Saturday raised the dearness allowance for state employees by 3 percentage points to 63%, from the existing 60%. The increase is effective from July 1, 2026, and was announced just ahead of Diwali.
The enhanced allowance will be paid along with the regular salary for November 2026. The order also covers arrears for the four months from July 1 to October 31.
Who is covered
The revision applies to state government employees, staff of aided educational and technical institutions, regular and full-time staff of urban local bodies, work-charged employees and those on UGC pay scales, subject to the terms of the order.
How the arrears will be paid
How an employee receives the arrears depends on the fund they belong to.
- General Provident Fund (GPF) employees: the arrears are credited to their GPF accounts, after the prescribed limits and income tax deductions. They stay there until November 1, 2027, and final withdrawal follows the rules for exceptional cases.
- National Pension System (NPS) employees: 10% of the arrears goes to the Tier-I account, to which the state adds 14%. The remaining 90% goes into a PPF account or National Savings Certificates, or is paid in cash if certificates are unavailable.
- Retirees: employees who retired between July 1, 2026, and the date of the order, and those retiring within six months, get their full eligible arrears in cash.
Where it stands
The new rate takes Uttar Pradesh level with neighbouring Haryana, which also moved its dearness allowance from 60% to 63% on November 6. The order did not state the cost to the state exchequer, and the number of employees who benefit was not given in the order as reported.