Thiruvananthapuram: The Kerala government has increased Dearness Allowance (DA) for state government employees and Dearness Relief (DR) for pensioners by two percentage points, raising the rates from 35% to 37%.

The enhanced DA will be paid along with the October salary, disbursed in November, while the revised DR will be paid along with the November pension, also disbursed in November.

The Finance Department issued the order on Saturday, October 17, covering state government employees, teachers, staff of aided schools, private colleges and polytechnics, full-time contingent employees and local government employees. The hike also applies to state service pensioners, family pensioners and ex-gratia pensioners and family pensioners.

The enhanced rates will also apply to part-time teachers, part-time contingent employees and re-employed pensioners, subject to the provisions of the order. The government said separate orders would be issued on arrears with effect from January 1, 2026.

Employees and pensioners of state public sector undertakings, statutory corporations, autonomous bodies, boards and grant-in-aid institutions following the state DA/DR pattern will also be eligible for the enhanced rates, subject to the conditions specified in the order. Organisations such as the Kerala State Electricity Board and the Kerala State Road Transport Corporation, which follow separate DA/DR orders, will continue under the existing procedure.

A separate order also raises DA for teaching staff covered by UGC, AICTE and Medical Education schemes who have moved to revised pay scales from 58% to 60%, while those continuing in the sixth revised scale will see an increase from 257% to 262%. Dearness Relief for eligible UGC pensioners and family pensioners has been raised at the corresponding rates.

The orders were issued by the Finance (Pay Research Unit) Department on October 17.