Kerala hikes Dearness Allowance to 35% for employees, pensioners

Thiruvananthapuram: The Kerala government on Friday announced that the Dearness Allowance for state government and local body employees, teachers, and staff of aided schools, colleges, and polytechnics will be raised from 25 to 35 per cent.

Full-time contingent employees will also receive a similar increase, with the enhanced allowances to be disbursed along with the March salary, according to a government order.

The revised DA will also apply to part-time teachers, part-time contingent employees, and re-employed pensioners, based on their pay, the order said.

A similar hike has been approved for Dearness Relief (DR) for state service, family, ex-gratia, and ex-gratia family pensioners. The enhanced amounts will be paid with the April pension.

A separate order will be issued regarding DA and DR arrears, it added.

The order added that local bodies must meet any additional expenditure arising from the DA and DR increase from their own funds.

Employees and pensioners of state Public Sector Undertakings, statutory corporations, autonomous bodies, boards, and grant-in-aid institutions following the state DA and DR pattern are also eligible, subject to conditions.

Such organisations may release the increased DA and DR based on a decision by their Board of Directors, Governing Body, Managing Committee, or Executive Committee, depending on their ability to meet the expenses from their own resources.

“If the organisation cannot meet these expenses on its own, prior government approval must be obtained,” the order said.

Organisations where more than 90 per cent of salary or pension costs are funded by plan or non-plan government grants may release DA and DR without prior government approval, but with the approval of their governing body.

The order clarified that the hike does not apply to the Kerala State Electricity Board and the Kerala State Road Transport Corporation, which will issue separate DA and DR orders.

“Such organisations should follow existing practices, including obtaining prior government approval, if any, while sanctioning DA and DR to employees and pensioners,” it said.