Kerala DA Hike 2026 : Government employees and pensioners have received welcome news ahead of Diwali. The Kerala government has announced a 2-percentage-point increase in Dearness Allowance (DA) for state employees and pensioners. Following the decision, the DA rate will rise from 35% to 37%. The move is expected to benefit eligible employees and pensioners across the state. However, it is important for beneficiaries to understand when the revised rates take effect and when payments will be made.

DA Increased to 37%
The Kerala government has announced the DA hike ahead of Kerala Piravi. According to an order issued by the Finance Department, the allowance rate has been increased from 35% to 37%. The revision applies to eligible state government employees and pensioners. The announcement is being viewed as relief for employees who have been demanding an increase in their dearness allowance for a considerable period.

Payment With Salary in November
According to the government order, the increased DA will be paid with the October salary, which will be disbursed in November. The revised Dearness Relief (DR) is scheduled to be paid with the November 2026 pension. The government estimates that the decision will increase its expenditure by approximately Rs 96 crore per month. A separate order will be issued regarding the payment of arrears.

Which Employees Will Benefit?
The revised rates cover state government employees, teachers, staff at aided schools and colleges, polytechnic employees, full-time contingent employees, local government staff and part-time teachers. Eligible pensioners, family pension recipients and ex-gratia pensioners may also benefit from the increased rates. Eligibility at individual institutions will depend on the applicable rules and the conditions specified in the government order.

Some Employees May Be Excluded
The DA increase will not automatically apply to employees of every institution. Eligibility for employees of public sector corporations such as KSRTC may depend on separate rules. According to the government order, employees and pensioners of public sector undertakings, government corporations, autonomous bodies, boards and grant-in-aid institutions may also qualify, provided their respective institutions follow the state government's DA rules.

Separate Decision on Arrears
The Kerala government has clarified that a separate order will be issued regarding arrears relating to the revised DA rate from January 1, 2026. Local governments will have to meet the additional expenditure from their own funds. Earlier, in February 2026, DA and DR had been increased from 25% to 35%. The latest 2-percentage-point increase is expected to provide further financial relief to eligible employees and pensioners.