Uttar Pradesh Government increases inflation allowance by 5% for Diwali festival

The government of Uttar Pradesh, led by Yogi, has announced significant support for its employees ahead of the Diwali festival. The provision of a 30-day temporary bonus for eligible employees for the financial year 2025-26 has been approved. The government issued a corresponding government order, which is expected to provide financial relief to millions of state workers before the holidays.

According to the government's directive, this bonus will be available to non-gazetted government servants. Furthermore, the 30-day temporary bonus will be provided to eligible employees working in educational institutions, local bodies, and district councils.

The government has devised a special scheme for disbursing the bonus amount. Under this scheme, 25 percent of the total bonus will be paid to employees in cash, while the remaining 75 percent will be credited to their Provident Fund (PF) accounts.

A special provision has been made for employees who are retiring or are soon to retire. For these workers, the entire bonus will be paid out in cash instead of being deposited into the Provident Fund, allowing them to receive the full amount directly.

The government's decision will benefit not only permanent non-gazetted employees but also qualified personnel working in various educational institutions and local bodies. The government order details the system concerning the bonus payment.

The bonus will also be provided to daily wage earners. A bonus limit of 1184 rupees has been set for this category, ensuring financial assistance to these workers before the festivals.

By approving the bonus before Diwali, the government has supported employees across various departments and institutions of the state. Now, according to the government order, eligible employees will receive a 30-day bonus for the financial year 2025-26.

In anticipation of the Diwali festival, the Gujarat state government has provided a significant gift to its employees. A 3% increase in the Dearness Allowance (DA) has been approved for 9.69 lakh employees and pensioners of the state.

This decision comes against the backdrop of a recent announcement by the federal government regarding a 3% increase in the Dearness Allowance for all its employees and pensioners. The DA hike set by the state government will take effect from July 1st. Following this, the DA for Gujarat employees will increase to 63% and will be disbursed with the July salary.

A representative of the state government, Minister Jithubhai Waghaani, announced the decision at the cabinet meeting. He clarified that the decision to increase the DA by 3% in line with the federal government was made for the state's employees. This DA increase will become effective from July 1, 2026.

More than 9.69 lakh families will directly benefit from this decision, including 4.62 lakh employees of government services, municipal services, and other institutions benefiting from the sixth and seventh pay commissions, as well as approximately 5.07 lakh pensioners.

To make the celebration even more joyous, the difference for four months, from July 2026 to October 2026, will be paid out in a lump sum. This amount for the past periods will be credited to the accounts of employees and pensioners along with the November 2026 salary. The state government will pay employees 523 crore rupees as compensation for the four months.

Furthermore, the DA increase will result in an additional annual financial burden on the state government amounting to 1569 crore rupees. The government, led by Chief Minister Bhupendra Patel, affirms its commitment to the happiness of workers who daily serve the cause of good governance and to increasing joy during their festivals.

The state government has made an important decision by announcing an increase in the inflation allowance for central employees. For a long time, central workers have been expecting the government to grant them a salary indexation increase for the Diwali holiday.

Just before Diwali, the Cabinet approved an increase in the inflation allowance, providing a significant gift to civil servants. An increase of 3 percent in the inflation allowance was approved for employees of the central government. Consequently, the inflation allowance for these workers increased by 3 percent, reaching 63 percent.

This increase in the inflation allowance applies to July. As a result of this increase, the salaries of central employees will increase in October. The total government expenditure related to this will amount to 10,016 crore rupees.