The Kerala government has reportedly approved a 2 percentage point increase in Dearness Allowance (DA), moving the rate from 35 to 37 per cent. This revision covers state government employees, teachers, aided school staff, private college and polytechnic employees, and local government workers. Pensioners, family pensioners, and ex gratia beneficiaries will also see their Dearness Relief (DR) rise to 37 per cent.
The hike means employees will receive an additional 2 per cent of their basic pay as DA. For instance, someone earning a basic salary of Rs 40,000 will see their DA rise from Rs 14,000 to Rs 14,800, adding Rs 800 to monthly income before deductions. The revised DA will be reflected in October salaries, paid in November, while pensioners will receive the increase with their November pension. However, arrears from earlier months will only be clarified through a separate government order.
While this move benefits thousands of employees and retirees, financial stress remains visible in other parts of the public sector. The Kerala State Road Transport Corporation (KSRTC) has reportedly deferred its pension hike due to heavy debt and weak revenue.
As per media reports, KSRTC has borrowed around Rs 3,000 crore at an interest rate of 10.1 per cent and owes nearly Rs 995 crore to employees and Rs 250 crore to contractors. With revenue growth falling short, the corporation has postponed pension increases until its financial position improves.
While incremental DA hikes bring relief, unresolved arrears and deferred pensions underline the strain of balancing employee expectations with debt and revenue pressures.
