Overview

• The Uttar Pradesh government has approved a 2% hike in dearness allowance (DA), increasing it from 53% to 55%, effective January 1, 2025.
• Approximately 16 lakh state employees will benefit from the increase, which aims to address inflationary pressures on workers.
• Revised DA payments will be included in April 2025 salaries, with arrears for January through March disbursed simultaneously.
• The decision imposes an additional ₹107 crore monthly burden on the state treasury, reflecting significant fiscal implications.
• This adjustment aligns Uttar Pradesh's DA rates with the central government's recent revisions under the 7th Pay Commission.