Following Rajasthan and Himachal Pradesh, the Uttar Pradesh government has also announced a 4 per cent hike in dearness allowance (DA) for its employees with a similar hike in dearness relief (DR) for pensioners. With this latest development, the DA and DR allowance rates will go up from 38 per cent to 42 per cent.

The decision to increase DA and DR allowances was taken on Tuesday. Furthermore, the new DA and DR rates will benefit over 16 lakh UP government employees, along with over 11 lakh pensioners in the state. The new allowance rates in UP will be applicable from Jan 1, 2023.

It must be noted that the said hike also follows the Union Cabinet's decision to increase dearness allowance and dearness relief for central government employees by 4% in March, 2023.