Highest DA in history; Bumper Onam loading for Kerala's govt employees

THIRUVANANTHAPURAM: The new government in Kerala will likely give a big relief to government employees for the upcoming Onam festival. The two per cent Dearness Allowance (DA) of January for employees and the equivalent DR of pensioners may be granted for Onam along with bonus and festival allowance. There is also a plan to pay the seven months of DA arrears in cash with retrospective effect from January this year.

The second Pinarayi government had not allowed retrospective effect to the Dearness Allowance of employees. The salary revision that was to be implemented in 2019 was implemented in 2021. The seven per cent DA that was arrears at that time was also merged with it. DA up to July 2025 was granted earlier this year, but the arrears were not paid.

Currently, the DA for government employees is 35 per cent. When the 2 per cent in January is added, it will be 37 per cent.

There will be an additional expenditure of Rs 97.80 crore per month, including Rs 54.20 crore for DA to employees and Rs 38.60 crore for DR to pensioners. The government will have to find Rs 684.60 crore to pay seven months' arrears during the Onam season.

The central government may sanction three per cent dearness allowance by the end of this month. When added, the DA of state government employees will increase to 40 per cent by the end of this year. With the pay commission delayed, the State employees will also get the highest DA in history.