On October 26, 2024, the Government of Kerala issued G.O.(P) No.91/2024/FIN, DA order announcing an increase in Kerala Dearness Allowance (DA) for State Government employees and pensioners.
This revision aims to offset the impact of inflation and provide financial relief to government employees and pensioners.
Key Highlights of Kerala DA Order
The Dearness Allowance has been increased from 9% to 12% for employees and pensioners. This adjustment will benefit a wide range of individuals, including:
- State Government Employees
- Teachers
- Staff of Aided Schools and Private Colleges
- Polytechnics Employees
- Full-time Contingent Employees
- Local Government Employees
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 DA/DR will be distributed along with the salary/pension. This implementation aligns with the state’s budget annoucements and the following is the updated DA chart for new pay revision.
| From | Total DA % for 2019 pay scales | 2016 | 2011 | 2006 | 1998 |
|---|---|---|---|---|---|
| 1st October 2024 | 12 | 43 | 169 | 360 | 419 |
Revised Kerala DA for Pre-Revised Scales
For employees continuing in pre-revised pay scales, the DA rates have been enhanced as follows:
| Pay Revision Orders | Revised Rate (%) |
|---|---|
| G.O.(P) No.07/2016/Fin dated 20.01.2016 | 43 |
| G.O.(P) No.85/2011/Fin dated 26.02.2011 | 169 |
| G.O.(P) No.145/2006/Fin dated 25.03.2006 | 360 |
| G.O.(P) No.3000/98/Fin dated 25.11.1998 | 419 |
Similarly, pensioners drawing pensions in pre-revised scales will receive revised Dearness Relief rates:
| Pension Revision Orders | Revised Rate (%) |
|---|---|
| G.O.(P) No.09/2016/Fin dated 20.01.2016 | 43 |
| G.O.(P) No.87/2011/Fin dated 28.02.2011 | 169 |
| G.O.(P) No.180/2006/Fin dated 18.04.2006 | 360 |
| G.O.(P) No.3001/1998/Fin dated 25.11.1998 | 419 |
Applicability to Specific Groups in Kerala
The enhanced DA will also apply to:
- Part-time teachers and contingent employees based on their pay.
- Re-employed pensioners.
- Employees and pensioners of State Public Sector Undertakings (PSUs), Statutory Corporations, Autonomous Bodies, Boards, and Grant-in-aid institutions on the State DA/Dearness Relief pattern.
Conditions for Kerala State PSUs and Other Organizations
Organizations following the State DA/Dearness Relief pattern can implement the revised rates under specific conditions:
- If they can meet expenses from their own resources, they may release DA/Dearness Relief without government approval.
- Organizations relying on government grants for over 90% of salary/pension expenses can release DA/Dearness Relief with approval from their governing bodies.
- Separate instructions apply to organizations like KSEB and KSRTC.
Kerala DA Order Implementation Timeline
The enhanced DA will be disbursed starting November 2024:
- Salary adjustments for October 2024 will reflect the revised DA rates.
- Pension disbursements from November 2024 onwards will include the enhanced Dearness Relief.
The additional expenditure for Local Governments due to this revision must be met from their own funds.
The revision of Dearness Allowance and Dearness Relief demonstrates the Kerala Government’s commitment to addressing inflationary pressures on its employees and pensioners. By increasing the rates, the government aims to ensure financial stability for its workforce and retired personnel.
This order was issued by Dr. A Jayathilak IAS, Additional Chief Secretary (Finance), on behalf of the Governor of Kerala.
For further details or inquiries on Kerala DA Order, stakeholders are advised to refer to the official document or contact relevant government departments.