State Announces DA Hike: A Pre-Diwali Gift for Employees

The southern state of Kerala has announced an increase in the Dearness Allowance (DA) ahead of Diwali. The state government has raised the DA by 2%. Find out which employees will benefit and from when the increased salary will be effective.

The Kerala government has provided a gift to its employees and pensioners ahead of 'Kerala Piravi' (the state's formation day). The state government has increased the Dearness Allowance by 2%, bringing the total DA from 35% to 37%. The DA hike is effective from January 1, with the actual implementation starting from November 1.

According to an order issued by the state's Finance Department, the increased DA will be paid along with the October salary (to be disbursed in November), while the revised DA for pensioners will be paid alongside their November 2026 pension. This move will result in an additional monthly expenditure of ₹96 crore for the government.

Government to Bear Additional Costs

The order further specifies that local government bodies will cover the additional expenses from their own funds. The state government also noted that a separate order regarding the payment of arrears (accrued since January 1, 2026) will be issued later.

Long-standing Demand for DA Hike

State government employees had been demanding an increase in their DA for some time. This latest revision follows a previous hike in DA and Dearness Relief (DR)—from 25% to 35%—which took place in February 2026.

Who is Eligible?

State government employees
Teachers
Staff in aided schools, colleges, and polytechnics
Full-time contingent staff
Local government employees
Part-time teachers
All pensioners, family pensioners, and ex-gratia pensioners.

Who is Excluded?

Employees of public sector corporations, such as the KSRTC, are not covered; the hike applies only to those directly employed by the state government. According to a government order, state government pensioners and employees working in various institutions will receive the benefit of the increased Dearness Allowance (DA) and Dearness Relief (DR). This includes state-level Public Sector Undertakings (PSUs), government corporations, autonomous bodies, boards, and grant-in-aid institutions. Provided these institutions follow the state government's rules regarding Dearness Allowance, their employees and pensioners will also be entitled to the increased rates, subject to meeting the prescribed conditions.