Kerala raises state employee and pensioner pay by 10 percentage points starting March 2026.

Kerala has raised the Dearness Allowance (DA) for state employees, local body staff, teachers, and pensioners from 25% to 35% of basic pay, effective March 2026. The increase applies to government workers, contingent staff, part-time teachers, and re-employed pensioners, with Dearness Relief (DR) for pensioners also rising by 10 percentage points. Arrears will be addressed in a separate order. Local bodies will cover added costs from their own funds. Public sector undertakings and autonomous bodies may adopt the new rates if approved by their governing bodies and financially feasible. However, the Kerala State Electricity Board and Kerala State Road Transport Corporation are excluded and will issue separate directives.