Kerala DA hike: Which employees and pensioners are eligible for increased dearness allowance and who is not? Explained

Kerala government announced a 2% hike in DA, DR for employees, pensioners to 37% of basic pay, with effect from January. Here's a look at which employees and pensioners are eligible for increased dearness allowance and who is not…

Kerala on 17 October announced hike in dearness allowance and dearness relief for state government employees and pensioners by 2% from 35% of basic pay to 37%, with effect from 1 January 2026, PTI reported.

The enhanced DA will be paid along with the October salary, disbursed in November and the revised DR) will be paid along with the pension for November 2026, according to an order issued by the state Finance Department, it added.

The latest revision follows an earlier increase in DA and DR from 25% to 35% in February 2026 and comes as government employees and pensioners sought much-needed relief amid soaring inflation.

The order added that local governments will meet the additional expenditure from their own funds. The state government also said a separate order will be issued on arrears with effect from 1 January 2026.

Today, we explain which Kerala state government employees and pensioners are eligible for the increased DA and DR, and who are excluded, and why.

Kerala DA hike: Who is eligible and who is not?

• Who is eligible for Kerala DA, DR hike?

The hike applies to state government employees, teachers, staff of aided schools, private colleges and polytechnics, full-time contingent employees and employees of local governments.