DA Hike 2026: During the festive season, great news has emerged regarding Dearness Allowance (DA). Kerala government has officially announced 2 percent increase in Dearness Allowance (DA) and Dearness Relief (DR). After this increase, dearness allowance of state employees has increased from 35 percent to 37 percent. This new order will be considered effective from January 1, 2026. This is expected to provide relief to lakhs of employees of the state amid rising inflation.
Increased DA-DR amount will be available in November
According to the order issued by the Finance Department, the increased dearness allowance to the employees will be paid in the month of November along with the October salary. At the same time, pensioners will get increased dearness relief (DR) with the pension of November 2026. Earlier in February 2026, dearness allowance was increased from 25 percent to 35 percent. Local government institutions will have to bear the additional expense of the increased allowance from their own funds. Apart from this, the government will soon issue a separate order regarding the payment of outstanding money (arrears) from January 1, 2026.
Which employees will get the benefit of increased DA?
– To all regular employees and teachers of the state government.
– Employees of aided schools, private colleges and polytechnic institutions.
– Full-time temporary employees and employees working in local government institutions.
– State government pensioners, family pensioners and people receiving ex-gratia pension.
– Part-time teachers and part-time temporary employees.
Re-employed pensioners will also get the benefit of increased DA on the basis of their salary.
What are the rules for PSUs and autonomous institutions?
Employees and pensioners of Kerala’s public sector undertakings (PSUs), government corporations, autonomous institutions, boards and government-aided institutions can also get the benefit of this increase. However, this benefit will be applicable only to those institutions which follow the dearness allowance rules of the state government. These institutions will have to implement the increase keeping in mind the decision of their management board and financial condition. Those institutions which are not able to bear its expenses themselves will have to take approval from the government.