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Big Relief for Kerala Employees: State Grants DA and DR Hike Worth Rs 2,000 Crore

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The Kerala government has announced a new instalment of Dearness Allowance (DA) for state employees and teachers, which is expected to increase the state's annual expenditure by approximately Rs 2,000 crore. Finance Minister K N Balagopal also confirmed the approval of a Dearness Relief (DR) instalment for pensioners.

In his statement, Balagopal said that the hike in DA and DR would benefit employees across various sectors, including UGC, AICTE, and medical services. The revised DA and DR will be distributed along with the upcoming salary and pension payments.

"As a result, the state's annual expenditure is expected to increase by about Rs 2,000 crore," he added.

This follows the release of one instalment of DA and DR in April. Moving forward, the Kerala government plans to provide two instalments of DA and DR each financial year to its employees and pensioners, a goal outlined by Chief Minister Pinarayi Vijayan in the legislative assembly.

Despite the financial challenges posed by the COVID-19 pandemic, Kerala implemented a favourable salary revision, according to Balagopal. He explained that employee benefits, including DA, were paid in cash at the start of the 2021-22 financial year. However, delays in disbursement occurred due to financial pressures caused by central government policies.

Balagopal stressed the government's commitment to supporting both employees and pensioners, despite ongoing financial difficulties.

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