Thiruvananthapuram: In a move expected to provide financial relief ahead of the Onam festival, the Kerala government is preparing to sanction a 2% Dearness Allowance (DA) instalment for state government employees.

According to information available, the additional DA benefit is likely to be credited along with the August salary, boosting employees' earnings ahead of the state's biggest festival.

The timing is significant as Onam falls in the last week of August this year, requiring the government to make arrangements for the early disbursal of salaries.

Official estimates indicate that implementing a single DA instalment would entail an additional expenditure of around ₹60 crore for the state exchequer.

While a formal government order is yet to be issued, the proposed DA instalment is being widely viewed as an Onam gift for government employees.