Kerala DA Hike: Kerala Government Announces 10% DA Hike for Employees and Pensioners

Kerala DA Hike: The Kerala government has brought significant cheer to its state employees with a major announcement regarding Dearness Allowance (DA). Following a long wait, an official order issued on Friday (February 20) confirmed a substantial hike in the DA rates, promising a boost in the monthly earnings of lakhs of employees.

How Much Has the DA Increased?

According to the official notification, the Dearness Allowance rate has been hiked by 10%. Previously, the rate stood at 25% of the basic pay, which has now been revised to 35%. This enhancement will directly reflect in the take-home salary of the employees. The government has clarified that the increased DA will be credited along with the March salary.

Who Will Benefit from This Move?

A wide range of employees across various sectors will benefit from this revision. The list of beneficiaries includes:

• State government employees.
• Staff of local self-government institutions.
• Teachers and non-teaching staff of aided schools, colleges, and polytechnics.
• Full-time contingent employees.

Additionally, part-time teachers, part-time contingent employees, and re-employed pensioners are also covered under this order. For them, the benefit will be calculated based on their eligible pay.

Relief for Pensioners (DR Hike)

The good news extends to retired personnel as well. The government has sanctioned a similar 10 percentage point increase in Dearness Relief (DR) for state service pensioners, family pensioners, and ex-gratia beneficiaries. While employees will receive the hike in March, pensioners will see the increased amount in their April pension.

Guidelines on Arrears and Funding

While the hike is confirmed, the modalities for the payment of arrears arising from this revision will be detailed in a separate order later.

Key Financial Instructions:

• Local Bodies: Institutions are directed to meet the additional financial burden from their own resources.
• PSUs and Autonomous Bodies: State Public Sector Undertakings and statutory corporations following the state DA pattern can implement the revised rates based on their Board’s decision, subject to their financial health.
• Grant-in-aid Institutions: Entities where over 90% of salary or pension expenditure is funded by government grants can release the revised rates without seeking separate government clearance.

Exceptions:
It is important to note that this order does not apply to the Kerala State Electricity Board (KSEB) and the Kerala State Road Transport Corporation (KSRTC). These organizations will follow their own existing procedures and issue separate orders for their employees.