THIRUVANANTHAPURAM: In a move widely seen as addressing employee concerns ahead of upcoming elections, the Kerala government has in principle decided to grant a 4% Dearness Allowance (DA) hike to its vast contingent of state government employees.
Chief Minister Pinarayi Vijayan is scheduled to make the official announcement in the State Legislative Assembly on November 1. The decision pertains to the Dearness Allowance installment due from January 2023.
The financial implications of the hike are significant. State Finance department estimates suggest that a 1% increase in DA costs the exchequer approximately ₹26 crore per month. The approved 4% DA hike will thus entail a substantial additional monthly expenditure of ₹104 crore.
Sources indicate that the government’s decision to sanction this installment comes as six installments of DA are currently pending. Once the January 2023 installment is disbursed, the total number of pending DA installments will be reduced to five. The timing, just before a major electoral cycle, is being closely watched by political observers and employee unions.
