7th Pay Commission: UP Govt Approves 3% DA Hike For State Govt Employees, Pensioners | Economy News

The CM Yogi Adityanath-led state government will bear an additional expenditure of Rs 1,960 crore until March 2026.

7th Pay Commission: Uttar Pradesh Chief Minister Yogi Adityanath has approved a 3% increase in dearness allowance (DA) and dearness relief (DR) for about 28 lakh state government employees and pensioners, according to an official statement. With this, the revised DA and DR now stand at 58% of basic pay with effect from July 1, 2025, compared with 55% earlier.

The state government will bear an additional expenditure of Rs 1,960 crore until March 2026. 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.

Additionally, payment of arrears for the period between July and September 2025 will entail an additional burden of over Rs 550 crore. Beginning December 2025, the government will incur an average monthly expenditure of Rs 245 crore to sustain the increased allowance.

The move comes after several other states also announced a similar move.

Odisha DA Hike

Odisha Chief Minister Mohan Charan Majhi on Thursday announced a 3% hike in dearness allowance of state government employees. The DA rate has now increased from 55 per cent to 58 per cent, according to an official release. It will be implemented retrospectively from July 1, 2025.

The dearness relief (DR) for pensioners has also been increased by three per cent.

The decision will benefit about 8.5 lakh government employees and pensioners in Odisha, the release said.

Himachal Pradesh DA Hike

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on October 15 announced the release of 3 per cent Dearness Allowance (DA) for employees and pensioners to be credited with October salaries and pensions, payable in November. The arrears for the period from April to September 2025 will also be deposited in the bank accounts of the employees in October, and separate orders will be issued for payment of arrears from July 2023 to March 2025, he added.

The announcement was made during the inauguration of the Biennial General Convention of the Himachal Pradesh Electricity Board Employees (HPSEB) Union in Shimla, a statement issued here said.

Gujarat DA Hike

Gujarat Chief Minister Bhupendra Patel on October 7 also approved an increase in the dearness allowance (DA) for the state government employees receiving benefits under the Sixth and Seventh Pay Commissions, in line with the central government’s standards, effective from July 1, according to an official statement from the Gujarat CMO.

Under this welfare-orientated decision for the employees by the Chief Minister, the Dearness Allowance for employees receiving benefits under the Seventh Pay Commission has been increased by 3 per cent. The Dearness Allowance for state government employees who are receiving benefits under the Sixth Pay Commission has been increased by 5 per cent, according to a release issued by the State government.

The arrear amount for three months of this Dearness Allowance increase, from July 1, 2025, to September 30, 2025, will be paid in one instalment. The benefit of this increase in Dearness Allowance will be admissible to a total of 4.69 lakh Karmayogis, including those of the state government, Panchayat services, and others, as well as approximately 4.82 lakh retired employees, i.e., pensioners.

Also, the state government will pay a total of ₹483.24 crore to employees as arrears, and an additional annual expenditure of ₹1,932.92 crore will be incurred towards salaries, allowances, and pensions.

Sikkim DA Hike

The Sikkim government also recently announced a hike in the dearness allowance (DA) for its employees and pensioners. Employees and pensioners drawing pay in the pre-revised basic pay structure will get an additional 6 per cent DA and DR (dearness relief), respectively, according to a notification issued by the Finance Department.

With this hike, their DA and DR will rise to 252 per cent, it said.

Employees and pensioners drawing pay in the revised basic pay structure will get an additional 2 per cent DA and DR. With this, their DA and DR will rise to 55 per cent, it added. The hike will be effective from January 1, 2025.

Employees appointed on a contract basis and by work-charged establishments drawing revised pay in the regular scales will also get the benefit, the notification said.

(With PTI Inputs)