UP government DA hike: Who benefits from the 63% allowance and how much more will employees get?

For government employees, a salary revision is welcome news. But when does a higher allowance actually reach their bank accounts, and what happens to the money owed for previous months? The Uttar Pradesh government's reported decision to raise Dearness Allowance (DA) to 63% ahead of Diwali brings both questions into focus.

According to ANI, the revised rate will apply from July 1, 2026. Employees are expected to receive the increased allowance with their November salary, while arrears for July to October will be deposited into their provident fund accounts.

Here is what the decision means, who stands to benefit and how it fits into the state's earlier salary revisions.

What is the new DA rate announced by the Uttar Pradesh government?

The reported revision raises DA for eligible Uttar Pradesh government employees to 63% of basic pay. The increase is effective retrospectively from July 1, 2026, meaning employees will be entitled to the revised rate from that date, even though the payment is scheduled later.

The announcement follows the Centre's October 29 decision to raise DA for central government employees from 60% to 63%, also with effect from July 1. The Union government's order was issued by the Department of Expenditure.

Who will benefit from the UP government DA hike?

ANI reported that the revised allowance covers state government employees, staff of aided educational and technical educational institutions, and eligible employees of urban local bodies.

The precise beneficiary count under this latest Uttar Pradesh announcement has not been independently confirmed. The coverage should also not automatically be extended to pensioners unless a separate government order explicitly includes them.

When will employees receive the increased salary and arrears?

The revised DA is expected to be included in November 2026 salaries. However, the additional amount owed for July, August, September and October will not be paid as an immediate cash component, according to the ANI report.

Instead, the four months' arrears will be credited to employees' provident fund accounts. This means the monthly salary will reflect the higher allowance, while the accumulated arrears will be placed in the designated retirement savings account.

How much more money will employees receive?

DA is calculated as a percentage of basic pay, not the entire salary. The reported revision from 60% to 63% represents an increase of three percentage points.

For example, an employee with a basic pay of Rs 40,000 would receive Rs 25,200 as DA at 63%, compared with Rs 24,000 at 60%. That is an additional Rs 1,200 per month, before other salary components and deductions are considered.

The actual increase will therefore vary according to each employee's basic pay.

What was the previous DA rate in Uttar Pradesh?

The state had previously raised DA to 60% from 58%, effective January 1, 2026. Hindustan Times reported in May that the earlier two-percentage-point revision was expected to benefit around 28 lakh employees and pensioners, with arrears for January to April placed in provident fund accounts for eligible employees.

The latest reported increase would bring the state rate to 63%, matching the Centre's revised rate. However, the state-specific government order is important for confirming the final coverage and payment rules.

What else has Yogi Adityanath announced for government employment?

The DA announcement comes amid the state government's wider employment drive. On November 6, Chief Minister Yogi Adityanath distributed appointment letters to 4,543 candidates selected for posts across the Uttar Pradesh Police. These included 4,242 civil police sub-inspectors, 135 platoon commanders in the Provincial Armed Constabulary, 60 personnel for the Uttar Pradesh Special Security Force and 106 women sub-inspectors.

The Chief Minister has also spoken of further recruitment, including appointments in the Revenue Department and police force. The DA revision and recruitment drive are separate measures, but together they form part of the government's broader employment and employee-welfare announcements ahead of the festive season.

(With inputs from ANI)