Kerala sanctions DA, DR arrears; ₹39,000 crore to be disbursed in 8 instalments

Thiruvananthapuram: The Kerala government has approved the disbursal of pending Dearness Allowance (DA) arrears for state government employees and teachers, along with Dearness Relief (DR) arrears for pensioners, with retrospective effect.

As per the order, the arrears will be released in eight instalments starting from the next financial year, with two instalments credited annually. For employees, the amount will be merged with their Provident Fund and can be withdrawn only after a period of four years.

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Teachers governed by the University Grants Commission (UGC), All India Council for Technical Education (AICTE), and those in the Medical Education sector will also be eligible for the arrears. The government had earlier indicated in the 2026–27 State Budget that steps would be taken to settle the pending DA/DR dues. In February and March, the Finance Department sanctioned 13 per cent DA and DR.

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For pensioners, the pending DR will be paid in cash in eight instalments over four years, at the rate of two instalments per year, beginning after April this year. Those who retired between January 1, 2021, and March 31 this year will also receive their arrears in cash after April.

Employees are entitled to a total of 35 per cent DA for the period from January 2021 to July 2025. The total financial commitment towards arrears is estimated at ₹39,000 crore. Previous DA hikes had been announced without clearly specifying retrospective implementation.