The Uttar Pradesh government has announced a Diwali bonus for around 14.5 lakh employees, with eligible staff set to receive the equivalent of 30 days’ emoluments for 2025-26, subject to a maximum payment of Rs 6,908.
The bonus applies to non-gazetted state government employees, staff of aided educational and technical institutions, employees of local bodies and zila panchayats, work-charged employees and daily-wage workers. The announcement follows the Centre’s October 15 order granting a similar bonus to central government employees.
According to the order issued on Wednesday, employees in posts up to Pay Matrix Level-8, with a salary range of Rs 47,600 to Rs 1,51,100, are eligible. Employees who entered higher levels through financial upgradation will also qualify under the order.
The calculation is based on a monthly emolument ceiling of Rs 7,000, resulting in the maximum bonus of Rs 6,908. For daily-wage employees, the monthly ceiling for calculation is Rs 1,200, making the maximum bonus Rs 1,184. Workers earning less than that amount will receive the bonus based on their actual emoluments.
Employees must have completed one year of continuous service up to March 31, 2026, to qualify. Daily-wage workers face an additional service requirement: they must have completed at least three years of continuous service and must have worked at least 240 days annually in offices following a six-day week, or 206 days annually in offices following a five-day week.
The payment structure places most of the bonus into long-term savings rather than immediate cash. Seventy-five per cent of the amount will be deposited into employees’ Provident Fund accounts, while the remaining 25 per cent will be paid in cash. Employees who do not have Provident Fund accounts will receive National Savings Certificates or deposits in Public Provident Fund accounts.
There are separate provisions for employees who have retired or are close to retirement. Those who retired after March 31, 2026, or are due to retire by April 30, 2027, will receive the full bonus amount in cash.
The order excludes employees who were under punishment or had been penalised in disciplinary or criminal proceedings during 2025-26. Where proceedings are pending, payment will be withheld until the case is concluded. If the employee is cleared of the charges, the bonus will be released along with arrears.
The eligibility conditions extend the measure beyond the state government’s regular workforce to personnel working in local government institutions, aided establishments, panchayats and other categories covered by the order. The payment will therefore be governed not only by the employee’s pay level, but also by service duration, employment category and the status of any disciplinary or criminal proceedings.
