Kerala DA Hike 2026: Government Raises Dearness Allowance To 37 Per Cent For Employees

The Kerala government has approved a 2 percentage point increase in Dearness Allowance (DA) for its employees, taking the rate from 35 per cent to 37 per cent. However, employees and pensioners waiting for their dues from the beginning of the year will have to wait for another government order to know when the arrears will be paid.

The Finance Department issued the revised rates through an order dated October 17, 2026. The decision covers state government employees, teachers, staff of aided schools, private colleges and polytechnics, as well as employees of local governments.

Revised DA Rates And Monthly Salary Payments

With DA moving from 35 per cent to 37 per cent, employees will get an additional 2 per cent of their basic pay as DA. The actual increase in monthly salary will depend on an employee's basic pay.

For instance, an employee drawing a basic salary of Rs 40,000 will see the DA component rise from Rs 14,000 to Rs 14,800. This translates into an additional Rs 800 in the monthly salary before other applicable deductions.

The revised DA will be paid with the salary for October 2026, which employees will receive in November.

Pensioners will also benefit from the 2 percentage point revision. Their DR will move from 35 per cent to 37 per cent and will be paid along with the November 2026 pension. The revised rate also covers family pensioners, ex-gratia pensioners and ex-gratia family pensioners.

Separate Order Awaited For Pending Arrears

While the revised rates will start reflecting in November payments, the government has not yet announced when employees and pensioners will receive the arrears.

The order makes it clear that arrears will be calculated from January 1, 2026. However, the payment arrangements will be communicated through a separate order, meaning that the increase in monthly DA and DR payments and the release of pending dues will be handled separately.

Other Employee And Pensioner Groups Covered

The revised DA also covers full-time contingent employees, part-time teachers, part-time contingent employees and re-employed pensioners. For part-time staff, the calculation will be based on the pay they draw.

Employees and pensioners of state public sector undertakings, statutory corporations, autonomous bodies, boards and grant-in-aid institutions following the state DA and DR system may also receive the revised rates.

These organisations must meet certain financial and approval requirements before releasing the payments. Those able to fund the additional expense from their own resources can approve the revision through their governing bodies. Others may need prior government approval.

The order excludes organisations such as Kerala State Electricity Board (KSEB) and Kerala State Road Transport Corporation (KSRTC), which follow separate procedures for DA and DR revisions.