Gift to 12 lakh state employees and pensioners in UP, 2 percent increase in dearness allowance

Lucknow, 21 May. Giving a big relief to the state employees, the Uttar Pradesh government has announced a two percent increase in Dearness Allowance (DA). According to the government order issued from the Finance Department, this decision has been taken in continuation of the order issued by the Central Government on April 22, 2026 for the central employees.

After the order issued by Additional Chief Secretary Finance Deepak Kumar on Thursday, DA of state employees has now increased from 58 percent to 60 percent. This increase will be considered effective from January 1. This will have a direct impact on eight lakh employees and four lakh pensioners of the state, there will be an increase in their salary or pension.

The benefit of this order of the state government will be available to all the full-time regular state employees of the state, aided educational and technical educational institutions, regular employees of urban local bodies, work charged employees and post holders working in the UGC pay scale.

No cash payment of 4 months arrears, PF accounts will be deposited in

It has also been made clear in the order that DA arrears for the period from January 1, 2026 to April 30, 2026 will not be given in cash to the employees. The outstanding amount of four months will be deposited directly into the employee’s provident fund (PF) account after deducting income tax and surcharge.

This amount will remain locked in the PF account till May 1, 2027. That means the employees will not be able to withdraw it until the final settlement is reached. For employees who do not have a PF account, their arrears will be given in the form of Public Provident Fund or National Savings Certificate. If NSC is not available, cash payment will be made.

Will get increase from May salary DA: Employees will start receiving the cash benefit of increased DA along with the regular salary of May, 2026. That means the salary for May will come with 60% DA.

NPS Separate arrangements for employees: The provision of arrears has been kept separate for employees covered by the National Pension Scheme. 10% of the arrears from January to April will be deposited in the Tier-1 pension account of the employee.

Retired employees will get arrears in cash

Giving relief in the Government Order, it has been said that the entire payment of DA arrears of four months will be made in cash to the officers/employees whose services have ended before the issue of the order, or who have retired from January 1, 2026 till the issue of the order, or are going to retire in the next six months.