The 12th pay revision, originally scheduled for July 2024, had been delayed multiple times due to financial constraints.
Thiruvananthapuram, Kerala: In a major relief for state government employees, Finance Minister KN Balagopal announced the setting up of the 12th Pay Revision Commission during the presentation of the Kerala Budget 2026 in the Assembly on Thursday.
The Commission is expected to submit its report within three months, paving the way for the next pay revision for employees.
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The Minister also confirmed that dearness allowance (DA) arrears will be paid in full. The government also unveiled an assured pension scheme, which will provide retirees with 50 percent of their last drawn salary, set to come into effect from April 1.
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During the previous 11th pay revision, implemented retrospectively from July 2019, the new basic pay was fixed at 1.37 times the existing pay, with a 27 per cent DA and a 10 per cent fitment benefit, resulting in an overall 37 per cent increase. The revised structure came into effect in March 2021, just before the last Assembly elections.
The 12th pay revision, originally scheduled for July 2024, had been delayed multiple times due to financial constraints. Balagopal’s announcement in the 2026 Budget signals that the government is now moving forward with steps to finalise the long-awaited salary revision for state employees.
The budget also announced an allocation of Rs 100 crore for the initial works in connection with the Regional Rapid Transit System (RRTS) from Thiruvananthapuram to Kasaragod that was given in-principle approval by the state cabinet on Wednesday.
It also announced around Rs 150 crore for the development of the coastal region.
The budget also announced over Rs 250 crore for forest and wildlife protection.
In the budget speech, Balagopal criticised the Central government, alleging that the Centre is "strangling" Kerala and cutting down its tax revenues. "Despite severe neglect, Kerala has progressed," the finance minister said.
Published: 29 Jan 2026, 12:00 pm IST
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