Keralam DA, DR hike: Government raises rates from 35% to 37%; here’s when the payments will begin
The government of Keralam has increased Dearness Allowance (DA) for state government employees and Dearness Relief (DR) for pensioners by two percentage points. Thus raising the rates from 35% to 37%.
This step is going to provide much-needed relief to serving government employees and pensioners, amid soaring inflation. Furthermore, the revised DA will be paid with the October 2026 salary, disbursed in November, whereas pensioners will receive the enhanced DR with their November pension.
The detailed notification on the same was issued by the Finance Department on October 17. The hike primarily covers state government employees, teachers, full-time contingent employees and local government staff. It also includes state service pensioners, family pensioners, and eligible ex-gratia pensioners and their families.
The staff of aided schools, private colleges and polytechnics are also covered under the applicable provisions. Employees and pensioners of public sector establishments, statutory corporations, autonomous bodies, boards, and grant-in-aid institutions, following the states’ DA/DR pattern, will also be considered, subject to certain specific conditions. All organisations following separate DA/DR orders will continue under their existing procedures.
Arrears to be announced separately
The government will undertake the task of issuing separate orders on arrears with effect from January 1, 2026. The latest revision follows an earlier increase in DA and DR from 25% to 35% in February 2026.
It is vital to keep in mind that, in a separate order, DA for eligible teaching staff covered by UGC, AICTE and Medical Education schemes and drawing revised pay scales has increased from 58% to 60%.
Furthermore, for those continuing in the sixth revised pay scale, the rate has risen from 257% to 262%. Corresponding DR revisions will apply to eligible UGC pensioners and family pensioners.
The revised rates will provide additional relief to eligible employees and pensioners from rising inflation amid turbulent geopolitical times, while the separate arrears orders will clarify the payment of pending dues.
For all eligible employees and pensioners, the two-percentage-point increase will translate into a higher monthly DA or DR payment, calculated on the applicable basic pay or pension.
Furthermore, the actual benefit will vary depending on individual pay and pension levels. Eligible beneficiaries should check the relevant government orders for payment details and arrears.
In summary, the revision is part of the state government’s periodic adjustment of DA and DR to help offset the impact of rising prices. Employees and pensioners should keep track of further Finance Department notifications and official updates for further developments on pending arrears and related matters.
