UP govt announces Diwali bonus for state employees

The Uttar Pradesh government has approved a 30-day bonus for state employees for the financial year 2025-26 ahead of Diwali, the state said on Thursday. The bonus will cover non-gazetted state government employees as well as staff of educational institutions, local bodies and district panchayats.Under the order, employees will receive 25 per cent of the total bonus amount in cash, while the remaining 75 per cent will be deposited into their provident fund accounts.
The bonus will be paid to non-gazetted state govt employees, staff of aided educational and technical institutions, local bodies and zila panchayats, work-charged employees, and daily-wage workers. The notification follows Centre’s Oct 15 order granting a similar bonus to central govt employees.
According to the order issued on Wednesday, 75% of the bonus amount will be deposited in employees’ Provident Fund accounts, while the remaining 25% will be paid in cash. Employees without PF accounts will receive National Savings Certificates or deposits in Public Provident Fund accounts. Employees who retired after March 31, 2026, or are due to retire by April 30, 2027, will receive the entire bonus amount in cash.
Employees who are under punishment or have been penalised in disciplinary or criminal proceedings during 2025-26 will not be eligible for the bonus. In cases where proceedings are pending, payment will be withheld until the outcome. If the employee is cleared of charges, the bonus will be released along with arrears. To be eligible, an employee must have completed one year of continuous service up to March 31, 2026. Daily-wage workers must have completed at least three years of continuous service, with a minimum of 240 days of work annually in six-day-week offices or 206 days in five-day-week offices.