Kerala Government Announces 10% Dearness Allowance (DA) Hike

• 23 Feb 2026
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The Kerala government has made an announcement regarding a 10% hike in Dearness Allowance (DA) for its employees, raising the rate from 25% to 35% of basic pay. This decision was formalized via an official order issued on Friday, February 20, to provide some financial relief to state government staff.

Who will Benefit from the Latest Hike in DA?

The revised DA will benefit a wide range of individuals. These individuals include state government employees, local self-government institution staff and both teaching and non-teaching staff at aided schools, colleges and polytechnics.

Full-time contingent employees are also included in this decision. The increased DA will appear in the March salary. Additionally, the order extends the benefit to part-time teachers, part-time contingent staff and re-employed pensioners. For them, hike will be calculated based on their eligible pay.

Increase in Dearness Relief (DR) for the Pensioners

Apart from the 10% DA hike, the Kerala government has also approved a 10% point increase in the Dearness Relief (DR) for the state service pensioners, family pensioners and ex-gratia beneficiaries. The revised DR will be paid along with the April pension.

Officials have indicated that a separate order will provide details on how the arrears from this revision will be processed. In the local bodies’ case, the additional financial burden shall be borne by the respective institutions, which have been asked to manage the expense using their own resources. 

Guidelines for Public Sector Undertakings and Autonomous Bodies

In the order, rules are outlined for state Public Sector Undertakings (PSUs), statutory corporations, autonomous bodies, boards and grant-in-aid institutions that adhere to the DA and DR pattern of the state. The revised rates by these organizations can be implemented on the basis of decisions taken by their Boards or governing bodies, as per their financial health. 

In case the entity is not able to bear the additional cost from its internal resources, it will require the state government’s prior approval. However, institutions where over 90% of salary or pension expenses are funded via government grants can release the revised DA and DR with approval from their governing bodies without needing any separate government clearance.

The state government of Kerala has made it clear that this order does not apply to the Kerala State Electricity Board (KSEB) and the Kerala State Road Transport Corporation (KSRTC). These organizations will issue separate orders and will continue to follow their existing procedures for the revision of the DA and DR for their employees as well as the pensioners.

Source: Zee News