Now employees will get 63 percent dearness allowance instead of 60 percent. The increased rate will be effective from July 1, 2026. A government order in this regard has also been issued on Saturday. The increased dearness allowance will be paid along with the regular salary of November 2026. Lakhs of employees of the state will benefit from this decision of the government.
This decision of the Yogi government is going to provide relief to the regular employees of the state along with aided educational institutions, urban local bodies and other eligible employee sections. According to the government order, arrangements have been made for different categories of employees for payment of arrears of increased dearness allowance from July 1 to October 31, 2026.
The amount of arrears of employees belonging to General Provident Fund (GPF) will be deposited in their provident fund account within the prescribed limit after deducting income tax and surcharge. This amount will remain deposited in the account till November 1, 2027. In special circumstances, the rules for final withdrawal will apply.
In case of employees covered under National Pension Scheme (NPS), 10 percent of the arrears will be deposited in their Tier-1 pension account. Apart from this, the State Government, as an employer, will also deposit a contribution equal to 14 percent of the arrears in the Tier-1 account.
The government has given special relief to retired and near-retirement employees. Employees whose services have been terminated before the issuance of the Government Order, who have retired between July 1, 2026, the date of issue of the Government Order or are going to retire within the next six months, will be given the entire amount of the arrears of Dearness Allowance in cash.