Kerala govt permits 50% withdrawal of DA arrears merged with PF

Mail This Article
Thiruvananthapuram: In a major relief for government employees, the Kerala government has permitted the withdrawal of 50% of the Dearness Allowance (DA) arrears that were earlier merged with the Provident Fund (PF). The finance department has also waived the lock-in period for withdrawing these funds.
The government had previously restricted the withdrawal of DA arrears merged with the PF, citing a severe financial crisis. This restriction applied even after the lock-in period had expired.
The DA arrears, amounting to four instalments, were sanctioned to government employees in February 2021. These included a 3% hike from January 1, 2019, a 5% hike from July 1, 2019, a 4% hike from January 1, 2020, and another 4% hike from July 1, 2020. However, instead of being paid in cash, the amount was merged with the employees’ PF accounts.
The government had initially stated that the merged instalments could be withdrawn only after April 1, 2023, September 1, 2023, April 1, 2024, and September 1, 2024. However, no approval had been granted for the withdrawal until now. Following a review of the situation, the state government has now decided to allow the withdrawal of 50% of the DA arrears, providing much-needed financial relief to employees.