This State Approves 10% DA Hike for Staff and Pensioners, Allowance to Reach 35% From March Salary

In a significant relief measure aimed at offsetting rising living costs, the Government of Kerala has sanctioned a 10-percentage-point increase in Dearness Allowance (DA) for its employees and pensioners. With this decision, the DA rate will rise from 25% to 35%, and the revised amount will be reflected in salaries disbursed for March 2026.

The move is expected to benefit a wide spectrum of personnel working under the Kerala administration, including government staff, local body employees, and workers in aided educational institutions. Teachers and non-teaching staff from aided schools, colleges, and polytechnic institutes will also receive the enhanced allowance, along with full-time contingent employees.

Who Will Benefit From the DA Increase?

The state’s order extends beyond regular government staff. Authorities confirmed that several additional categories will be eligible for the revised allowance:

• Employees of local self-government bodies

• Teaching and non-teaching staff of aided institutions

• Full-time contingent workers

• Part-time teachers and contingent staff

• Re-employed pensioners

For these groups, DA will be calculated based on their eligible salary or pay scale, ensuring proportional benefits across employment types. The government has emphasized that the revision aims to maintain income stability amid inflation and rising daily expenses.

Pensioners to Receive Higher Dearness Relief

Alongside active employees, state service pensioners and family pension beneficiaries will also gain from the decision. Their Dearness Relief (DR)—the pension equivalent of DA—has likewise been raised by 10 percentage points. The revised DR will be credited starting with April pension payments.

Officials added that any arrears resulting from the increase will be released separately, and a detailed order regarding payment of pending dues will be issued in due course.

Implementation Guidelines for Institutions

While the pay revision will apply automatically to most state-funded employees, implementation for certain bodies will depend on financial feasibility. Public sector undertakings, statutory boards, and autonomous institutions have been advised to adopt the revised DA and DR rates based on their financial capacity.

However, the decision does not immediately apply to the Kerala State Electricity Board or the Kerala State Road Transport Corporation. Separate directives will be issued for these entities after reviewing their financial position.

Local bodies, meanwhile, have been instructed to manage the additional expenditure arising from the DA revision using their own resources.

Why DA Revisions Matter

Dearness Allowance is a crucial salary component for government employees and pensioners across India. It is designed to counter inflation and preserve purchasing power by periodically adjusting earnings in line with price index movements. Even a small percentage increase can translate into meaningful monthly gains, especially for lower-pay-scale employees and retirees who rely heavily on fixed incomes.

Regular DA revisions also serve as a policy tool for state governments to maintain workforce morale and economic stability. By raising the allowance, administrations aim to ease financial pressure on households and support consumption in the broader economy.

Broader Impact on State Employees

The latest revision is being viewed as one of the more substantial hikes in recent years, given the double-digit percentage jump. Analysts say such increases can improve disposable income levels for thousands of families, particularly in periods marked by inflationary trends.

Employee associations have welcomed the decision, noting that it reflects recognition of the financial challenges faced by workers and retirees alike. They also expressed hope that pending arrears will be cleared promptly once the government releases detailed payment instructions.

Outlook

With the revised DA set to appear in March salary slips and pension adjustments scheduled for April, beneficiaries will begin experiencing the financial impact within weeks. While certain state-run corporations await separate orders, the broader workforce stands to gain immediately.

The announcement underscores the state administration’s effort to provide timely economic support to its employees and pensioners, reinforcing the role of periodic allowance revisions in maintaining financial security during fluctuating cost-of-living conditions.