Kerala raises DA and DR to 37% for state employees and pensioners; arrears order to follow
Kerala has raised dearness allowance and dearness relief by two percentage points to 37%, payable with the November disbursal. Orders on arrears from January 2026 will be issued separately.

The Kerala government has increased dearness allowance (DA) for its employees and dearness relief (DR) for pensioners by two percentage points, from 35% to 37%. The state Finance Department issued the order on October 17, and the hike has been among the most searched topics in Kerala since.
When it will be paid
Employees will get the higher DA with their October salary, which is paid out in November. Pensioners will receive the revised DR with their November pension. The revision is effective from January 1, 2026, but the arrears for the intervening months are not part of the November payment; the government has said a separate order on arrears will follow.
Who benefits
The revised DA covers state government employees and teachers, staff of aided schools, private colleges and polytechnics, full-time contingent workers and employees of local bodies. The DR increase applies to state service pensioners, family pensioners and ex-gratia pensioners.
Part-time teachers, part-time contingent staff and re-employed pensioners are covered subject to the order’s conditions, as are employees and pensioners of state public sector undertakings, statutory corporations, autonomous bodies, boards and grant-in-aid institutions that follow the state’s DA pattern. Bodies such as KSEB and KSRTC are outside this order and will follow their own procedure.
Local bodies will meet the extra cost from their own funds. Other organisations may adopt the new rates based on their governing bodies’ decisions and finances, and need prior government approval if they cannot bear the cost, unless 90% or more of their salary and pension bill is funded by government grants.
Separate hike for UGC, AICTE scale staff
In a parallel order, DA for teaching staff on revised UGC, AICTE and Medical Education scales was raised from 58% to 60%, with DR for corresponding pensioners revised in line. For those still on the older, unrevised scales, the rate rises from 257% to 262%.
Sources
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