2% DA Hike: What's the full update?
The 2% DA hike has been proposed by the Kerala government to provide financial support to employees ahead of the Onam festival. With Onam being celebrated in the last week of August this year, the salary hike ahead of the festival will help employees with shopping and festive expenses.
The decision will benefit all government employees working in various departments of the state government.
How much salary will you get? Full Calculation
DA is always calculated on the basis of basic salary. The direct benefit of the 2% increase will be seen in the monthly salary of the employees.
If an employee's basic salary is Rs 30,000, then his salary will increase by Rs 600 every month on the basis of a 2% hike. At the same time, an employee with a basic salary of Rs 40,000 will get a benefit of Rs 800 per month. Those with a basic salary of Rs 50,000 will get Rs 1,000 and those with a basic salary of Rs 60,000 will get an additional Rs 1,200 per month.
The 2% hike will put an additional annual burden of around ₹60 crore on the state exchequer. The hike will also be applicable for employees who are still drawing salary under the old pay scales
10% DA Hike in February 2026
This 2% increase comes after the previous 10% DA hike in February 2026. In February 2026, the Kerala government had increased the DA and DR (Dearness Relief) from 25% to 35%, the benefit of which was given along with the March 2026 salary (disbursed in April).
All state employees, teachers, staff of aided schools, private colleges, polytechnics, full-time contingent employees, local body employees and pensioners were benefited by that hike.
Central government employees and bank employees will also benefit
This decision of Kerala has been taken after the central government increased DA and DR by 2% from January 1, 2026. The DA of central employees has now been increased from 58% to 60% of basic pay.
This change in DA is made every six months based on the All-India Consumer Price Index (AICPI). Besides, the Indian Banks' Association (IBA) has also announced revised DA and DR for bank employees and officers for May, June and July 2026, increasing their basic salary by ₹48,000 to ₹1,17,000.
Is there an official order yet?
So far, the official gazette notification on 2% DA Hike has not been issued by the Kerala government. According to media reports, the government has completed internal preparations and a formal order will be issued very soon.
It is expected that after the official order comes, the employees will start getting the increased DA with the salary of August 2026.
Conclusion
The announcement of a 2% DA hike before Onam 2026 in Kerala is a big relief for government employees.
This is the second Dearness Allowance hike after the 10% hike in February 2026, which will come with the salary of August 2026. An employee with a basic salary of Rs 30,000 will get a benefit of Rs 600 per month, while those with Rs 50,000 will get Rs 1,000 per month, although this will put an additional burden of Rs 60 crore on the government.
The hike will be applicable to government employees, teachers, pensioners and local body employees of Kerala. Stay tuned to timesbull.com for the latest updates on government schemes, salary hikes and employees.