New Delhi: The Kerala government has announced a 10 per cent hike in Dearness Allowance (DA) for its employees, increasing the rate from 25 per cent to 35 per cent of basic pay. The decision was formalised through an official order issued on Friday (February 20), bringing some financial relief to state government staff.
Who Will Benefit from the DA Hike
The revised DA will benefit a wide range of beneficiaries, including state government employees, staff of local self-government institutions, and teaching as well as non-teaching staff of aided schools, colleges and polytechnics. Full-time contingent employees are also covered under the decision. The increased DA will be reflected in the March salary. The order further extends the benefit to part-time teachers, part-time contingent staff and re-employed pensioners, with the hike calculated on their eligible pay.
Relief for Pensioners Too
Alongside the DA hike, the government has also approved a 10 percentage point increase in Dearness Relief (DR) for state service pensioners, family pensioners and ex-gratia beneficiaries. The revised DR will be paid with the April pension. Officials said a separate order will detail how arrears from the revision will be cleared. In the case of local bodies, the additional financial burden will be borne by the respective institutions, which have been asked to manage the expense from their own resources.
Guidelines for PSUs and Autonomous Bodies
The order also outlines rules for state Public Sector Undertakings (PSUs), statutory corporations, autonomous bodies, boards and grant-in-aid institutions that follow the state’s DA and DR pattern. These organisations can implement the revised rates based on decisions taken by their Boards or governing bodies, depending on their financial health.
If an entity is unable to bear the additional cost from its internal resources, it will need prior approval from the state government. However, institutions where over 90% of salary or pension expenses are funded through government grants can release the revised DA and DR with approval from their governing body, without seeking separate government clearance.
The government clarified that this order will not apply to the Kerala State Electricity Board (KSEB) and the Kerala State Road Transport Corporation (KSRTC). These organisations will issue separate orders and will continue to follow their existing procedures while revising DA and DR for their employees and pensioners.
