Kerala Hikes Employee Allowances

The India — Kerala government has announced a 10% hike in Dearness Allowance (DA) for its employees, raising the rate from 25% to 35% of basic pay. This decision, formalized on February 20, 2026, benefits state government employees, staff of local self-government institutions, and teaching/non-teaching staff of aided schools, colleges, and polytechnics. Full-time contingent employees, part-time teachers, part-time contingent staff, and re-employed pensioners are also covered. Additionally, a 10 percentage point increase in Dearness Relief (DR) has been approved for state service pensioners, family pensioners, and ex-gratia beneficiaries. The enhanced DA will be reflected in the March salary, while the revised DR will be paid with the April pension. Local bodies are required to bear the additional financial burden from their own resources. State Public Sector Undertakings, statutory corporations, autonomous bodies, boards, and grant-in-aid institutions following the state's DA and DR pattern can implement the revised rates based on their financial health, with some requiring prior government approval. However, the India — Kerala State Electricity Board and the India — Kerala State Road Transport Corporation are excluded from this order and will issue separate directives.