The Kerala government has announced a significant increase in the Dearness Allowance (DA) for its employees and teachers, raising it from 12% to 15%. This adjustment also extends to staff of aided schools, private colleges, polytechnics, full-time temporary employees, and those employed in local government institutions. Part-time teachers, contingent employees, and re-employed pensioners will also benefit from this revision, which is based on their respective pay scales. The enhanced DA will be disbursed along with salaries starting from April 2025, payable from May 2025 onwards.
In tandem with the DA hike, the government has approved an increase in Dearness Relief (DR) for state service pensioners, family pensioners, ex-gratia pensioners, and ex-gratia family pensioners, elevating it from 12% to 15%. This move underscores the government’s commitment to supporting its retired personnel amidst rising living costs. The revised DR will be dispensed alongside pensions beginning in April 2025, with payments commencing from May 2025.
However, this DA and DR enhancement does not automatically apply to certain organizations, such as the Kerala State Electricity Board (KSEB) and the Kerala State Road Transport Corporation (KSRTC). These entities are required to adhere to their existing procedures and must seek prior government approval before implementing any DA or DR revisions. Organizations that already follow the state pattern of DA/DR can implement the revised rates without direct government reference, provided their governing bodies approve the decision and the expenses are covered by their own resources. If an organization cannot bear the additional cost, it must obtain prior approval from the government. Furthermore, organizations where more than 90% of salary or pension expenses are funded by plan or non-plan grants can release the revised DA/DR with internal approval from their governing bodies, without seeking prior government consent.
This DA and DR hike is anticipated to result in an approximate annual expenditure increase of ₹2,000 crore for the state. Despite financial challenges, including those posed by the COVID-19 pandemic, the Kerala government has maintained its commitment to revising salaries and allowances to support its employees and pensioners. Earlier, in April 2024, the government had granted one installment of DA and DR. Chief Minister Pinarayi Vijayan had previously indicated in the legislative assembly that starting from this financial year, the government aims to provide two installments of DA and DR annually to employees and pensioners. Finance Minister K N Balagopal emphasized that the government remains steadfast in ensuring the welfare of its employees and pensioners, reflecting its dedication to their financial well-being.
