UP govt’s Diwali gift: 3% dearness allowance hike for 28 lakh employees, pensioners

The increased amount will be paid in cash starting October 2025.

Chief Minister Yogi Adityanath said in a statement that the state government is fully committed to the interests of its employees and pensioners and that the decision symbolised compassion and respect for them. He described the move as a sensitive step aimed at providing relief from inflation and improving the living standards of employees and pensioners. The CM expressed confidence that “this Diwali gift will bring new energy, happiness, and prosperity to their lives”.

The decision will result in an additional expenditure burden of Rs 1,960 crore on the state exchequer till March 2026, officials said.

Additionally, payment of arrears for the period between July and September 2025 will entail an additional burden of over Rs 550 crore. Of this, Rs 795 crore will be the extra cash outgo in November 2025, while Rs 185 crore will be credited to the General Provident Fund (GPF) accounts of employees under the Old Pension Scheme.

Beginning December 2025, the government will incur an average monthly expenditure of Rs 245 crore for the increased allowance. — PTI inputs