Kerala announces 10% DA, DR hike to 35% for employees and pensioners

Higher allowance from March salary and April pension, arrears order awaited

Kerala has raised Dearness Allowance (DA) and Dearness Relief (DR) by 10 per cent, offering a pay boost to lakhs of employees and pensioners ahead of the new financial year.

 

According to PTI, the state government has increased DA from 25 per cent to 35 per cent for state government employees, local body staff, teachers and employees of aided schools, colleges and polytechnics. The decision was notified through a government order issued on February 20.

 

What has changed?

 

The revised 35 per cent DA will be paid along with the March salary, which is typically disbursed in April. Pensioners will receive the higher 35 per cent DR with the April pension.

 

 

The order also makes clear that:

 

·  Full-time contingent employees will receive the same increase.

 

·  Part-time teachers and part-time contingent employees will get the enhanced DA based on their pay.

 

·  Re-employed pensioners are covered under the revised rates.

 

·  State service pensioners, family pensioners and ex-gratia beneficiaries will receive the higher DR.

 

A separate order will be issued on arrears, the government said.

 

What it means for take-home pay?

 

Dearness Allowance is paid to government employees to offset the impact of inflation. It is calculated as a percentage of basic pay. A 10 per cent increase can meaningfully raise monthly earnings, especially for employees with higher basic pay.

 

For pensioners, Dearness Relief works on similar lines, cushioning the impact of rising prices on fixed retirement income.

 

Employees and pensioners drawing pay and pension under pre-revised scales will also see their DA and DR rates revised, in line with the applicable pay revision orders.

 

Conditions for PSUs and autonomous bodies

 

The benefit extends to employees and pensioners of state public sector undertakings, statutory corporations, autonomous bodies, boards and grant-in-aid institutions that follow the state DA/DR pattern. However, there are conditions.

 

Such organisations may release the enhanced DA and DR based on a decision by their board or governing body, depending on whether they can meet the additional expenditure from their own resources. If they are unable to do so, prior government approval will be required.

 

Bodies where more than 90 per cent of salary or pension expenses are funded through government grants can release the hike without prior approval, provided their governing body clears it.

 

The order clarifies that the revision will not automatically apply to the Kerala State Electricity Board and the Kerala State Road Transport Corporation, which will issue separate orders.

 

Local bodies have been directed to meet the additional financial burden from their own funds.

 

(With inputs from PTI)