Kerala DA Hike: State Government Increases Dearness Allowance by 10% to 35%

The Kerala government has approved a 10% increase in Dearness Allowance, raising it from 25% to 35% of basic pay for eligible state employees. 

Kerala Government Raises DA to 35% from February 20, 2026 

As per news reports, on February 20, 2026, the Kerala government issued an order increasing Dearness Allowance by 10%, taking it from 25% to 35% of basic pay.  

The revision will benefit state government employees, local self-government institution staff, teachers and non-teaching staff of aided schools, colleges and polytechnics. 

Full time contingent employees are also covered under the revised rates. The enhanced DA will be reflected in the March salary cycle. 

Dearness Relief for Pensioners Increased by 10% 

The government has also sanctioned a 10% increase in Dearness Relief for state service pensioners, family pensioners and ex gratia beneficiaries. The revised DR will be paid with the April pension. 

A separate order will specify the modalities for payment of arrears arising from the revision. 

Applicability and Financial Responsibility 

The order extends the revised DA to part-time teachers, part-time contingent employees, and re-employed pensioners, calculated on eligible pay.  

In the case of local bodies, the additional financial outgo will be borne by the respective institutions from their own resources. 

State Public Sector Undertakings, statutory corporations, autonomous bodies and grant in aid institutions following the state DA pattern may implement the revised rates based on decisions of their governing bodies, subject to financial position. 

Read More: Bank Employees’ DA Hiked To 25% For Feb–Apr 2026: Check Details! 

Exclusions Under the Order 

The order does not apply to Kerala State Electricity Board and Kerala State Road Transport Corporation. These entities will issue separate instructions and follow existing procedures for revising DA and DR. 

Conclusion 

The 10% increase in DA and DR raises the allowance rate to 35% for eligible employees and pensioners in Kerala. The revision will be implemented through March salaries and April pensions, with detailed arrear guidelines to be issued separately. 

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