
The Government of Kerala has announced a significant hike in Dearness Allowance (DA) and Dearness Relief (DR) for teaching staff and pensioners under various educational schemes, bringing relief to thousands of beneficiaries across the state.
According to the Finance Department’s notification, teaching staff under the UGC, AICTE, and medical education schemes who transitioned to the revised pay scale from January 2016 or later will now receive a DA of 46%, up from 42%. Similarly, those continuing under the 6th pay scale (from January 2006) will see their DA rise from 221% to 230%.
For UGC pensioners and family pensioners, the DR rate has also been raised, from 42% to 46% for those following the 2020 revision order, and from 221% to 230% for those yet to adopt the revised structure. The new DA will be credited with October 2025 salaries, while the increased DR will reflect in November 2025 pensions.
The department clarified that the revised rates apply to grant-in-aid institutions and other bodies where these schemes are implemented through government orders, subject to fund availability.
A day before this announcement, the Kerala Finance Department also enhanced DA for state government employees, teachers, aided school and college staff, and local body employees from 18% to 22%. The DR for state service pensioners, family pensioners, and ex-gratia recipients has been similarly revised.
The order extends eligibility to part-time teachers, re-employed pensioners, and employees of public sector undertakings, statutory bodies, and autonomous organisations following the state DA-DR pattern. However, these entities must ensure that additional expenses are covered through their own resources, or else seek prior government approval.
Institutions meeting over 90% of their salary or pension expenses through government grants may release the revised payments after securing board-level approval.
The government has clarified that the latest DA-DR increase will not apply to the Kerala State Electricity Board Ltd (KSEB) and the Kerala State Road Transport Corporation (KSRTC), which have been instructed to issue separate orders in line with their existing policies.
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Kerala’s DA-DR hike underscores the state’s continued commitment to supporting its workforce and pensioners amid inflationary pressures. The decision will benefit thousands of teachers and retirees, reinforcing financial stability and improving the overall welfare framework across the education and public service sectors.
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Published on: Nov 3, 2025, 1:28 PM IST

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