DA Hike News: Before Onam (Onam 2026) in Kerala, 2% DA hike has been announced for government employees. Employees working in various departments of the state government will benefit from this increase in DA. It is being told that the government has completed its preparations and the employees will start getting the increased DA along with the salary of August 2026.

Government is giving Onam gift

The festival of Onam is to be celebrated in the last week of August this year. It is being said that this installment will be approved to provide financial relief to the employees before the festival. Internal preparations for the proposal to increase DA by 2% for government employees have been completed and an official order on this will be issued very soon. Earlier, in February 2026, the Kerala government had announced a huge increase of 10% in DA, giving relief to the employees and pensioners, the benefit of which is starting to be available with the March salary.

How much will the salary increase?

DA is always calculated on the basis of basic salary. Suppose if someone’s basic salary is Rs 30000, then according to 2% hike, the salary will increase by Rs 600 every month. Similarly, if someone’s salary is Rs 50000, he will now get an increase of Rs 1000 per month. However, due to 2% increase in DA, there will be an additional burden of Rs 60 crore on the state government.

DA of central employees also increased

The government in Kerala has taken this decision after the Finance Ministry increased DA and Dearness Relief (DR) by 2% from January 1 this year. Due to this, basic pay has increased from earlier 58% to 60%. Changes in DA are made every six months on the basis of All-India Consumer Price Index (AICPI). The announcement regarding DA Hike is usually made in March and October, while it is implemented in January and July.

After the increase in DA for central employees, the Indian Banks Association (IBA) also announced the revised DA and DR for all levels of employees and officers for May, June and July 2026. Due to this, his basic salary increased from Rs 48,000 to Rs 1,17,000 and DA from Rs 435 to Rs 1,050.

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DA Hike News: On one hand, central government employees and pensioners are waiting for increase in salary and pension under the 8th Pay Commission. On the other hand, in Kerala the government has announced a 10 percent increase in Dearness Allowance (DA) for its employees. Due to this, the basic salary of the employees working under the Kerala government will increase from 25 percent to 35 percent.

Who will get the benefit of DA increase?

The state government employees who will benefit from this decision of the government to increase DA will include employees of local bodies, teachers and non-teaching staff of aided schools, colleges and polytechnic institutions. Apart from these, full-time contingent employees will also come under the purview of this decision.

The increased DA will be reflected in the salary for March. Overall, this decision of the government will also benefit part-time teachers, part-time contingent staff and pensioners who get re-employment and the increase in DA will be calculated according to their eligible salary.

Relief to pensioners also

Along with increasing DA, the government has also approved 10 percent increase in Dearness Relief (DR) for State Service Pensioners, Family Pensioners and ex-gratia recipients. This increased amount will be given to pensioners along with April pension. The government has also said that a separate order will be issued for payment of the outstanding amount due to increase in DA and DR. In case of local bodies, the burden of additional expenditure will be borne by the concerned institutions.

In this decision of the government, rules have also been mentioned for the state’s Public Sector Undertakings (PSUs), Statutory Corporations, Autonomous Bodies, Boards and Grant-in-Aid Institutions, which follow the DA and DR pattern of the state. These organizations can apply DA and DR depending on their financial position. If an entity cannot bear the extra cost from its internal resources, it will have to take prior approval from the state government.

However, institutions where more than 90 per cent of salary or pension expenditure is funded by government grants can issue revised DA and DR without obtaining separate government clearance after taking approval from their governing body. However, this order of the government will not apply to Kerala State Electricity Board (KSEB) and Kerala State Road Transport Corporation (KSRTC). Separate orders will be issued for these institutions.

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