Kerala DA Hike raises the Dearness Allowance (DA) for state government employees from 35% to 37%, while pensioners will receive a corresponding increase in Dearness Relief (DR).
The Kerala government has announced the 2-percentage-point increase with revised payments scheduled for November 2026.
The decision will benefit eligible government employees, teachers and pensioners, along with staff in several aided educational institutions and local government bodies.
The revised rates are effective from January 1, 2026, while a separate order is expected to address the payment of arrears.
Kerala DA Hike: What Has Changed?
The latest decision increases the DA rate from 35% to 37%. This is a rise of two percentage points, rather than a 2% increase in basic salary.
The actual additional amount an employee receives will depend on their eligible basic pay and the applicable service rules.
Dearness Allowance is intended to help government employees manage the impact of inflation on household expenses.
Dearness Relief serves a similar purpose for eligible pensioners, helping them manage living costs after retirement.
The revised rates follow an earlier increase in February 2026, when Kerala raised DA and DR from 25% to 35%. The latest revision takes the standard rates to 37% for eligible employees and pensioners covered by the order.
Who Will Receive the Increased DA and DR?
The revised rates cover eligible Kerala state government employees and teachers, staff of aided schools, private colleges and polytechnics, full-time contingent employees, and local government employees.
State service pensioners, family pensioners and eligible ex-gratia pensioners are also included.
Part-time teachers, part-time contingent employees and re-employed pensioners may also qualify, subject to the applicable conditions.
Employees and pensioners of public sector undertakings, statutory corporations, autonomous bodies, boards and grant-in-aid institutions that follow the state’s DA and DR pattern may receive the benefit under the rules governing their organisations.
For these organisations, implementation can depend on approval by the governing body and the ability to meet the additional expenditure.
Institutions unable to cover the cost from their own resources may need prior government approval, while certain institutions receiving more than 90% of their salary or pension expenditure through government grants can follow the specified approval process.
When Will Employees and Pensioners Get the Increased Amount?
Eligible employees will receive the revised DA with their October 2026 salary, payable in November. Pensioners will receive the increased DR with their November pension payment.
The government has indicated that a separate order will address arrears dating back to January 1, 2026.
The arrears are separate from the revised monthly payments, so employees and pensioners should look for further official instructions on the payment schedule.
The exact amount due will depend on the individual’s eligible pay or pension and the applicable rules.
Which Organisations Follow Separate DA Orders?
The increase does not automatically apply under the same order to every state-linked organisation.
The Kerala State Electricity Board (KSEB) and Kerala State Road Transport Corporation (KSRTC), for example, follow separate DA and DR procedures and are expected to issue their own applicable orders.
Employees and pensioners should check with their department, pension-disbursing authority or organisation to confirm the rate applicable to them.
The latest decision raises the standard DA and DR rates to 37%, but eligibility and payment arrangements depend on the relevant service rules and official orders.
