Kerala DA Hike Update: Kerala Govt Announces 10% DA Hike For Employees, Allowance Raised To 35%

• Kerala government has approved a 10% hike in Dearness Allowance, raising it from 25% to 35%.
• Revised DA will be reflected in March salaries, while pensioners will get increased DR from April.
• Order covers employees, teachers, contingent staff and re-employed pensioners.

The Kerala government has cleared a 10 per cent increase in Dearness Allowance (DA) for its employees, offering a measure of financial relief amid rising living costs.

The official order issued on February 20 raises the DA rate from 25 per cent to 35 per cent of basic pay, and the revised amount will begin reflecting in salaries from March.

The decision covers a broad group of beneficiaries across state departments and aided institutions, bringing a uniform revision across various employment categories.

Who Will Benefit?

The revised DA will apply to state government staff, local self-government institution employees and teaching as well as non-teaching staff working in aided educational institutions. Full-time contingent employees will also receive the revised allowance, calculated on their eligible pay.

Covered under the revised DA:

• State government and local body employees
• Aided school, college and polytechnic staff
• Full-time and part-time contingent workers
• Re-employed pensioners and part-time teachers

Relief for Pensioners

Along with the DA hike, the state has also approved a 10 percentage point increase in Dearness Relief (DR) for pensioners and family pensioners. The revised DR will be paid starting April, and a separate order will specify how arrears from the revision will be settled.

For employees of local bodies, the additional financial burden due to the hike will be managed by the respective institutions from their own funds.

Guidelines for PSUs and Boards

The government order has also set guidelines for public sector undertakings, statutory bodies and grant-in-aid institutions that follow the state's DA and DR pattern.

These organisations can implement the revised rates depending on their financial position and decisions of their governing boards.

]Entities unable to meet the additional expense internally will need prior approval from the state government. However, institutions heavily dependent on government grants can release the revised benefits with governing body approval.

Separate Orders for KSEB and KSRTC

The government clarified that the current order will not apply to the Kerala State Electricity Board and the Kerala State Road Transport Corporation.

These organisations will issue separate directions and continue to follow their existing procedures for revising allowances for employees and pensioners.