DA Hike: This DA hike ahead of Onam in Kerala will provide significant relief to government employees. It is also being called an Onam gift from the government to employees.

2% DA hike for government employees in Kerala

DA Hike News: A 2% DA hike has been announced for government employees in Kerala ahead of Onam (Onam 2026). This DA increase will benefit employees working in various state government departments. It is reported that the government has completed preparations for this, and the increased DA will begin to be paid to employees with their salaries beginning in August 2026.

The government is giving Onam gifts

Onam is scheduled to be celebrated in the last week of August this year. This installment is said to be approved to provide financial relief to employees before the festival. Internal preparations for the proposed 2% DA increase for government employees have been completed, and an official order will be issued soon. Previously, in February 2026, the Kerala government announced a substantial 10% DA increase, providing relief to employees and pensioners, and the benefits began accruing with the March salary.  

How much will the salary increase?

DA is always calculated based on the basic salary. For example, if someone's basic salary is ₹30,000, a 2% increase would result in a monthly salary increase of ₹600. Similarly, if someone's salary is ₹50,000, they will now receive an increase of ₹1,000 per month. However, the 2% increase in DA will impose an additional burden of ₹60 crore on the state government.

DA of central employees also increased.

The Kerala government's decision follows the Finance Ministry's 2% increase in DA and dearness allowance (DR) effective January 1 of this year. This has resulted in an increase in basic pay from 58% to 60%. DA revisions are made every six months based on the All-India Consumer Price Index (AICPI). DA hikes are typically announced in March and October, while they are implemented in January and July.

Following the DA hike for central employees, the Indian Banks' Association (IBA) also announced revised DA and DR for employees and officers at all levels for May, June and July 2026. This increased their basic salary from Rs 48,000 to Rs 1,17,000 and DA from Rs 435 to Rs 1,050.