The Uttar Pradesh government has raised the dearness allowance (DA) of its employees from 60 per cent to 63 per cent of basic pay, with the Finance Department issuing the formal orders on Saturday, 7 November. A parallel order raises dearness relief for pensioners and family pensioners to the same 63 per cent rate.

Source: The Hindu

Both orders are effective from 1 July 2026. State employees will receive the higher DA in cash with their November 2026 salary. Their arrears for the four months from 1 July to 31 October will not be paid in cash: after deduction of income tax and surcharge, the arrears amount will be credited to the employee's provident fund account, according to the staff order.

Source: UP Finance Department orders, reported by Indian Pay Calculator

63%New DA rate
60%Previous rate
1 July 2026Effective from
November salaryHigher DA paid with

The staff order covers full-time regular state government employees, regular full-time staff of government-aided educational and technical institutions, employees of urban local bodies, work-charged employees, and post-holders drawing salaries on University Grants Commission (UGC) pay scales.

The state order follows the Centre's decision: the Union Department of Expenditure's memorandum of 29 October 2026 set DA for central government employees at 63 per cent from 1 July 2026, and Uttar Pradesh's Finance Department cited that memorandum in its own order. The state had earlier raised its employees' DA from 58 per cent to 60 per cent with effect from 1 January 2026.

The increase, announced days before Diwali, raises the take-home pay of the state's workforce for the festival season and aligns Uttar Pradesh with the central rate. Employee unions had been pressing the state to match the Centre's revised allowance after the October memorandum.