Kerala Likely To Announce 2% Dearness Allowance Hike Ahead Of Onam

The Kerala government is considering a hike of 2 per cent in Dearness Allowance for its state government employees. This revision is likely to be paid along with August salaries ahead of the Onam festival. While an official notification is yet to be announced, the proposal is expected, as per a report by Live Mint. This hike would provide additional financial support to employees during one of the state's biggest festivals.

As per the report, the proposed DA revision would result in an additional expenditure of Rs 60 crore for the state. Since Onam falls in the last week of August, the government is expected to announce the hike in time for employees to receive the increased salary before the festivities start.

However, the Kerala government has not yet released an official order confirming the increase; the available information suggests that the revision is expected to be released with the salary for the month of August.

Dearness allowance is a major component of the salary structure for government employees. It is intended to offset the impact of inflation and the rising living costs by extending periodic increases, which are linked to changes in the cost of living. DA revisions are based on and announced as per the All India Consumer Price Index and are announced at regular intervals.

Earlier this year, the Union Finance Ministry approved a 2 per cent increase in DA and dearness relief (DR) for government employees and pensioners, which would have been effective from January 01, 2026. The revision raised DA and DR rates from 58 per cent to 60 per cent. Revisions like these are typically announced twice a year, usually around January and July.

Several other organisations and government bodies have also revised DA rates in recent months. The Indian Banks Association and the Railway Board approved a DA hike for their employees, pensioners and eligible beneficiaries who are covered under the 7th Pay Commission.

Aside from Kerala, multiple states have announced revisions to DA or have shared their consideration to do so. States like Assam, Arunachal Pradesh, Bihar, Odisha, and Tamil Nadu are a few states that have approved the proposals. Punjab and Himachal Pradesh are among the states that are considering revision proposals. If the proposal is approved in Kerala, the 2 per cent DA increase would provide an additional financial cushion to state government employees ahead of festivities, relieving employees and pensioners of stress. However, employees and pensioners are expected to wait for the official government order before the revision comes into effect.