The Kerala government has issued a new Dearness Allowance (DA) order, bringing relief to state employees and pensioners. The latest DA hike of 2% will be effective from January 1, 2024, increasing the total DA rate to 50% for state government employees.
Key Highlights of the Kerala DA Order
- DA Increase: The DA and Dearness Relief (DR) have been raised from 7% to 9%
- Implementation Date: The hike will be effective from January 1, 2024. Beneficiaries: Government employees, teachers, and pensioners will benefit from this increase. Special Categories: College teachers and those in engineering and medical colleges will see their DA rise from 17% to 31%.
DA Rates for Different Employee Grades
The Kerala DA order specifies different rates for various employee categories:
- Regular Government Employees: 50% of basic pay
- College Teachers: 31% of basic pay
- Judicial Officers: 46% (up from 38%)
- All India Services Officers: 46% (up from 42%)
DA Calculation Method for Kerala State Employees
The DA calculation for central government employees follows this formula: DA% = [(Average of AICPI for the last 12 months – 115.76)/115.76] x 100 While the exact formula for Kerala state employees may differ, it is likely based on a similar principle, taking into account the All-India Consumer Price Index (AICPI).
Kerala DA Order
Finance Minister announced that one installment of DA/DR will be distributed along with the salary/pension for April 2024. This implementation aligns with the state’s budget annoucements and the following is the updated DA chart for new pay revision effective from 1st July 2019
| From | DA Hike | Total DA % | Arrears | DA in Salary from |
|---|---|---|---|---|
| 01-01-2021 | 2 | 9 | Not Mentioned | April 2024 |
| 01-07-2020 | 3 | 7 | 01/09/2024 or Retirement | March 2021 |
| 01-01-2020 | 4 | 4 | 01/04/2024 or Retirement | March 2021 |
| 01-07-2019 | 0 | 0 | No DA from 01.7.19 to 31.12.19 | — |
While specific details about DA arrears are not provided in the current order, it’s worth noting that in previous years, the Kerala government has addressed arrears. For instance, in 2024, the government announced a one-time DA hike to be distributed in April.
Impact on Different Employee Categories
The Kerala DA order affects various employee categories differently:
- Regular Government Employees: Will receive the full 2% hike, bringing their total DA to 50%
- Pensioners: Will receive Dearness Relief (DR) at the same rate as DA
- College Teachers: Significant increase from 17% to 31%
- Judicial and All India Services Officers: Separate DA rates as mentioned earlier
The 11th Pay Revision Commission’s recommendations have influenced the current DA structure. The commission was appointed to study and make recommendations on the revision of pay and allowances for university employees not covered by UGC/AICTE/Central Schemes.
Conclusion: The latest Kerala DA order demonstrates the state government’s commitment to addressing the rising cost of living for its employees. As the implementation date approaches, state employees can expect a boost in their take-home salary, helping them cope with inflation. The government’s decision to distribute the DA hike along with April 2024 salaries ensures timely benefits for the workforce.