Kerala hikes Dearness Allowance to 35 pc for employees, pensioners

The Kerala government has announced an increase in the Dearness Allowance (DA) for its employees and pensioners, raising it to 35%. This decision, aimed at aiding public sector workers and retirees in coping with the rising cost of living, was made during a cabinet meeting. The hike, effective from July 1, 2023, will benefit over 4.5 lakh state government employees and an equal number of pensioners. The increase in DA is in line with the government's commitment to support its workforce amidst inflationary pressures. This adjustment reflects the state administration's recognition of the financial challenges faced by employees and pensioners, particularly in the wake of economic disruptions caused by the pandemic. The previous DA was set at 30%, making this a notable increase that is expected to provide significant financial relief to many families in Kerala. The government is optimistic that this move will enhance the morale of employees and retirees, fostering a more stable economic environment while ensuring that the state remains competitive in attracting and retaining talent in the public sector.