Kerala hikes DA, DR for employees and pensioners from 22% to 25%, disbursal from March

Thiruvananthapuram: The Kerala government has announced a hike in dearness allowance (DA) for state government employees and dearness relief (DR) for pensioners, revising the rate from the existing 22% to 25%.

The revised rates will apply to state government employees, teachers, staff of aided schools, private colleges and polytechnics, full-time contingent employees, and employees of local governments. Pensioners, family pensioners, ex-gratia pensioners and ex-gratia family pensioners under the state service will also benefit from the hike.

According to the government order issued by the Finance Department on February 4, the enhanced DA will be disbursed along with the salary for February 2026, which will be paid in March. The revised dearness relief for pensioners will be paid along with the pension due for March 2026.

Revised DA/DR under pre-revised pay scales
Employees continuing under older pay revision orders will receive DA at higher revised rates. Similarly, pensioners drawing benefits under pre-revised scales will receive enhanced dearness relief at the same revised rates corresponding to their pension revision orders.

• 59% for those under the 2016 pay revision
• 203% under the 2011 revision
• 419% under the 2006 revision
• 478% under the 1998 revision

The government clarified that the additional expenditure arising from the DA hike for local government employees will be met by the respective local bodies from their own funds. The enhanced rates will also apply to part-time teachers, part-time contingent employees and re-employed pensioners, based on the pay drawn by them.

Applicability to PSUs
Employees and pensioners of state public sector undertakings, statutory corporations, autonomous bodies, boards and grant-in-aid institutions following the state DA and DR pattern will be eligible for the revised rates, subject to conditions.

Organisations that can meet the additional expenditure from their own resources may implement the hike based on a decision of their board or governing body. Those unable to do so will require prior government approval. However, institutions where over 90% of salary or pension expenses are met through government grants can release the enhanced DA and DR with board approval, without prior clearance from the government.

The order clarified that the revision will not apply to organisations such as KSEB and KSRTC, which issue separate dearness allowance and relief orders. These entities will continue to follow the existing procedure, including obtaining government approval where required. The government said a separate order will be issued regarding the payment of arrears.

DA/DR hike under UGC, AICTE, Medical Education schemes
In a separate order, the Kerala government has also revised the dearness allowance and dearness relief for teaching staff and pensioners under UGC, AICTE and Medical Education schemes. As per the order issued by the Finance Department, DA for teachers who shifted to the revised scales from January 1, 2016 has been increased from 46% to 50%, while those continuing in the sixth pay scale from January 1, 2006 will get a hike from 230% to 239%. Dearness relief for UGC pensioners and family pensioners has been revised on similar lines. The enhanced DA will be paid along with February salary, disbursed in March, while the revised DR will be paid with pensions due from March. Orders on arrears will be issued separately.