UP Employees Celebrate as Yogi Adityanath Approves 3% DA Hike

Uttar Pradesh Chief Minister Yogi Adityanath approved a 3% increase in dearness allowance (DA) and dearness relief (DR) for approximately 28 lakh state government employees and pensioners on October 16, 2025, elevating the rate from 55% to 58% of basic pay, effective from July 1, 2025. The decision, announced ahead of Diwali, aims to mitigate inflation's impact and enhance living standards, with the enhanced amount payable in cash starting November 2025, including arrears for July to September. This marks the second DA revision in 2025, following a 2% hike in April that raised it from 53% to 55%, aligning with central government adjustments based on the All India Consumer Price Index for Industrial Workers.

The hike will impose an additional financial burden of ₹1,960 crore on the state exchequer until March 2026, comprising ₹795 crore in extra cash disbursements in November—including ₹185 crore credited to General Provident Fund accounts under the Old Pension Scheme—and over ₹550 crore for arrears payments. From December onwards, monthly outgo is estimated at ₹245 crore. Adityanath described the move as a "sensitive step" to provide inflation relief and reflect the government's welfare commitment, directing swift implementation for festive-season benefits. Officials emphasised prompt crediting to ensure employees and pensioners receive the support without delay, underscoring the policy's role in bolstering household finances amid rising costs for essentials like food and fuel.

This announcement follows similar DA hikes in other states, including Assam's 3% increase to 58% on the same day and Himachal Pradesh's recent adjustment, signalling a coordinated response to post-pandemic economic pressures and wage stagnation. In Uttar Pradesh, where government employees form a significant workforce segment, the revision is projected to inject liquidity into local economies, particularly during the Diwali shopping season. It also precedes discussions on the 8th Pay Commission, approved in January 2025 but yet to form its terms of reference, which could further revise salaries. Economists note that such periodic DA hikes help maintain real income parity, though they add to fiscal deficits in states like Uttar Pradesh, already navigating infrastructure investments and debt servicing.

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Public reaction on X has been overwhelmingly positive, with posts from outlets like the Hindustan Times and Financial Express garnering thousands of views, hailing it as a "Diwali gift". Adityanath's X post, quoting the hike as igniting "satisfaction, security, and prosperity" in 28 lakh lives, received widespread shares, amplifying its festive resonance. As implementation unfolds, the policy reinforces the BJP-led government's employee-centric narrative, potentially influencing similar demands in neighbouring states and contributing to broader consumption recovery in India's largest state by population.

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