THIRUVANANTHAPURAM: In a significant policy reversal and a clear electoral strategy move, the Kerala government has decided to credit the long-withheld Dearness Allowance (DA) arrears of state government employees to their Provident Fund (PF) accounts. This move, spearheaded by Finance Minister K.N. Balagopal, will see lakhs of employees receive substantial arrears, potentially reversing the financial hardship and discontent caused by the earlier decision to deny retrospective DA payments.
Since assuming the Finance portfolio in 2021, Balagopal had sanctioned four installments of DA but had broken with tradition by withholding the arrears, a practice that previously involved merging the accrued amount into the employee’s PF. The denial had resulted in losses running into lakhs of rupees for many employees, generating widespread resentment.
With elections drawing closer, the government has now decided to merge the pending DA arrears into the PF accounts. This strategic shift is widely seen as an attempt by the Finance Minister to shed the reputation of being the minister who denied DA arrears.
The financial relief is substantial across various levels:
- Additional Secretary: Approximately ₹6 lakh in arrears.
- Joint Secretary: Approximately ₹5.50 lakh.
- Deputy Secretary: Approximately ₹5.25 lakh.
- Under Secretary: Approximately ₹5 lakh.
- Section Officer/Senior Superintendent: Approximately ₹4 lakh.
- Assistants: ₹2.50 lakh to ₹3.50 lakh.
- Clerk/Junior Superintendent/Head Clerk: ₹2 lakh to ₹3.50 lakh.
- Teachers (Pre-Primary to Higher Secondary): Ranging from ₹2 lakh to ₹5 lakh.
- Drivers: Approximately ₹2 lakh.
- Office Assistants: Approximately ₹1.75 lakh.
While the arrears will be credited immediately to the PF, the withdrawal will be permitted only in the subsequent government’s tenure, with orders expected to stipulate withdrawal over the financial years 2026-27 and 2027-28.
Notably, personal staff of ministers and officials will receive their arrears in cash. The underlying election strategy is clear: to mitigate the deep-seated disapproval among government staff ahead of the polls and secure their goodwill through a massive financial injection.
