DA Hike News: This 10% increase in dearness allowance (DA) has brought joy to state government employees. This will increase their basic salary from 25% to 35%.

DA Hike News: While central government employees and pensioners are waiting for salary and pension increases under the 8th Pay Commission, the Kerala government has announced a 10 percent increase in dearness allowance (DA) for its employees. This will increase the basic salary of employees working under the Kerala government from 25 percent to 35 percent.

Who will get the benefit of DA increase?

The state government employees who will benefit from this decision to increase DA include employees of local bodies, teachers, and non-teaching staff of aided schools, colleges, and polytechnic institutions. In addition, full-time contingent employees will also be covered by this decision.

The increased DA will be reflected in the March salary. Overall, this government decision will benefit part-time teachers, part-time contingent staff, and re-employed pensioners, and the DA increase will be calculated based on their eligible salary.

Relief to pensioners too

In addition to the DA increase, the government has also approved a 10% increase in Dearness Relief (DR) for state service pensioners, family pensioners, and ex-gratia recipients. This increased amount will be paid to pensioners along with their April pension. The government has also stated that a separate order will be issued for the payment of outstanding amounts due from the DA and DR increases. In the case of local bodies, the additional expenditure will be borne by the respective institutions.

This government decision also outlines rules for state public sector undertakings (PSUs), statutory corporations, autonomous bodies, boards, and grant-in-aid institutions that follow the state's DA and DR pattern. These organizations can implement DA and DR based on their financial situation. If an entity cannot cover the additional cost from its internal resources, it must first obtain approval from the state government.

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

Source: istockphoto.com