UP DA Hike: Yogi Government Announces Special Arrears Payment Rules for Employees

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Lucknow: Before Diwali, the Uttar Pradesh government has given big relief to the employees and pensioners of the state. The government has announced a 3 percent increase in the rates of Dearness Allowance (DA) and Dearness Relief (DR). After this, employees and pensioners will now get DA and DRA at the rate of 63 percent instead of 60 percent. The increased rates will be applicable from July 1, 2026. About 28 lakh employees and pensioners are expected to benefit from this decision of the government. The benefit of increased DA and DRA will be given along with November salary and pension.

When will I get the arrears from July to October?

The government has decided different arrangements for payment of dues from July 1 to October 31, 2026. According to the government order, the arrears of employees belonging to General Provident Fund (GPF) will be deposited in their provident fund account after deducting income tax and surcharge. This amount will remain in the account till November 1, 2027. In special circumstances, the facility of final withdrawal will be available as per rules.

How will retired employees get full payment?

The government has made separate arrangements for retired and soon to be retired employees. Employees whose services have been terminated before the issuance of the order, or who have retired between the date of issue of the order and July 1, 2026, will be given the entire amount of arrears in cash. Employees retiring in the next six months will also be paid their full dues in cash.

Which employees and pensioners will get the benefit?

The scope of this decision includes all full-time regular employees of the state government. Apart from this, regular employees of aided educational and technical educational institutions, urban bodies and post holders getting UGC pay scale will also get its benefit. Eligible pensioners of the state will also be given increased dearness relief.

For employees who do not have a GPF account, their arrears amount can be deposited in the Public Provident Fund (PPF) or given in the form of National Savings Certificate (NSC). In case NSC is not available, the relevant amount will be given in cash.

What is the arrangement for NPS employees?

The method of payment of arrears of employees associated with the National Pension Scheme (NPS) has also been decided. 10 percent of their dues will be deposited in the Tier-1 pension account. Apart from this, the State Government, as an employer, will also deposit its contribution equal to 14 percent of the arrears in this account. The remaining 90 percent amount will be deposited in the PPF account or given as NSC. If NSC is not available, this amount will be given in cash.

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