Kerala raises DA to 37% for state employees and pensioners
3 November 2026 · 2 min read · HireHo
Based on a BW People report published on 3 November 2026. Summarised in our own words.
37%new DA and DR rate
35%earlier rate
Rs 96 crextra cost to the state each month
1 Jan 2026arrears due from
The Kerala government has raised Dearness Allowance (DA) for state employees from 35% to 37%. Dearness Relief (DR) for pensioners also goes up to 37%. The Finance Department issued the order on 17 October.
Who gets it and when
- Government employees, teachers, aided school staff, private college and polytechnic staff, and local government employees.
- State service and family pensioners.
- Employees get the new DA with October salary, paid in November. Pensioners get it with the November pension.
- Arrears from 1 January 2026 will come through a separate order.
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The money pressure
The hike will add about Rs 96 crore a month to the state's spending. State transport body KSRTC follows its own DA process, so it is not covered automatically. KSRTC has put off a pension increase and owes nearly Rs 995 crore to its employees.
What this means for you
- State employees and pensioners in Kerala will see higher take-home pay.
- DA hikes raise pay benchmarks for public-sector and allied jobs in the state.
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SourcesBW People: Kerala raises DA to 37% amid mounting fiscal pressureHireHo explains these reports in its own words. Figures belong to the sources above.
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