Kerala Govt To Spend ₹2,000 Crore on Offering DA/DR Hike to State Employees and Pensioners

The Kerala government has approved a new instalment of Dearness Allowance (DA) for state government employees and teachers. The government also cleared Dearness Relief (DR) for pensioners. This announcement was made by State Finance Minister K N Balagopal on Saturday.

The increased DA and DR will be reflected in the salaries and pensions paid from September 1, 2025. This is the second time the government is granting such a hike this year.

Who Will Benefit from the DA/DR Hike?

In addition to regular state employees and teachers, the hike will also benefit staff under the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), and medical services.

This move will bring financial relief to thousands of employees and retired personnel across the state.

Financial Impact on the State

The revised payments are expected to cost the state an additional ₹2,000 crore annually. Despite this burden, the state government has gone ahead with the decision, showing its commitment to the welfare of its employees and pensioners.

Past Actions and Promises

The Finance Minister also mentioned that the government had granted two DA instalments last year as well. He noted that despite the tough financial conditions caused by the Covid-19 pandemic, the state had kept its promises regarding pay revisions.

Since the 2021-22 financial year, DA has been paid in cash, which has been a direct benefit to the employees and pensioners.

Read more: Titagarh Rail Systems Secures ₹91.12 Crore Order from Banaras Locomotive Works.

Conclusion

This latest DA and DR hike is a welcome move for state government employees, teachers, and pensioners. While it increases the financial load on the state budget, it also shows that the government is standing by its workforce. With inflation continuing to impact daily life, this hike offers some relief to those who serve and have served the public sector in Kerala.

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