Diwali Bonanza: Yogi Govt Plans 3% DA Hike & Bonus for 18 Lakh UP Staff

In a major festive relief measure for the state workforce, the Yogi Adityanath-led Uttar Pradesh government is finalizing a comprehensive Diwali package benefiting nearly 1.8 million state government employees and pensioners. The proposal, spearheaded by the state Finance Department, combines a formal increase in Dearness Allowance (DA) and Dearness Relief (DR) with festival productivity bonuses for non-gazetted staff. The coordinated rollout aims to disburse financial benefits in time for festive expenditures, with updated salaries and bonus amounts scheduled to reach bank accounts in early November alongside October payroll distributions.

Financial Breakdown: 3% DA Hike from July and Up to ₹7,000 Festival Bonus

The financial blueprint prepared by the administration incorporates an across-the-board 3 percent increase in Dearness Allowance for active state government personnel and Dearness Relief for retired pensioners, effective retroactively from July. For eligible non-gazetted employees, the government has cleared a festival bonus expected to range between ₹3,400 and ₹7,000 based on pay metrics. The Finance Department has already initiated the statutory file processing to ensure departmental sanctions and budgetary releases are finalized without procedural delay.

Honorarium Restructuring: 2.7 Lakh Outsourced Staff to Receive Substantial Wage Revisions

Beyond permanent civil personnel, the state administration is rolling out a structured upward revision in honorarium slabs for around 2.70 lakh contractual and outsourced workers engaged across government departments—a count that expands beyond 3.50 lakh when including outsourced personnel within the state electricity boards. Following the operational launch of the dedicated outsourced service portal by Chief Minister Yogi Adityanath on September 2, the enhanced pay matrix establishes new statutory wage baselines:

• Category 1 Personnel: Revised honorarium set at ₹40,000 per month

• Category 2 Personnel: Revised honorarium set at ₹25,000 per month

• Category 3 Outsourced Staff: Revised honorarium set at ₹22,000 per month

• Class 4 Workers: Revised honorarium set at ₹20,000 per month

The upgraded honorarium slabs are expected to take effect from September, ensuring outsourced personnel benefit from revised wage structures ahead of Diwali.

Strengthened Welfare Norms: 180 Days Maternity Leave and Fixed Monthly Pay Dates

To resolve long-standing grievances regarding payment irregularities and working conditions, the revised guidelines issued under the Uttar Pradesh Contractual and Outsourced Services framework (UPCAS) mandate strict worker protections. All outsourced employees will now receive their salaries on a fixed schedule by the fifth of every month directly into designated accounts. In addition to regularized pay cycles, the policy formalizes comprehensive medical leave provisions, enhanced family healthcare safeguards, and a mandatory 180-day paid maternity leave entitlement for women employees, drawing strong appreciation from state employee federations and labor associations.