The Kerala government has announced an increase in Onam bonuses and allowances for its employees and pensioners, benefiting over 13 lakh people in the state. This decision, made despite the state's financial constraints, aims to enhance the festive spirit and provide financial relief during the Onam season.

Finance Minister K. N. Balagopal announced the following key changes:

• Bonus Increase: The Onam bonus for government employees and teachers has been increased by ₹500, bringing the total bonus amount to ₹4,500.
• Special Festival Allowance: Employees who are not eligible for the bonus will receive a special festival allowance of ₹3,000, which is an increase from the previous ₹2,750.
• Pensioner Allowance: Service pensioners will see their festival allowance rise by ₹250, bringing it to ₹1,250. This benefit will also be extended to retirees under the contributory pension scheme.
• Onam Advance: All government employees are eligible for an Onam advance of ₹20,000. Part-time and contingent staff will receive an advance of ₹6,000.
• Contract and Scheme Workers: Contract and scheme workers who received the allowance last year will also receive an increase of ₹250 in their festival allowance.

Various groups of workers will receive different levels of payments:

• Pre-primary teachers and staff in special schools will receive ₹1,250.
• Midday meal workers in schools will get ₹1,550.
• ASHA workers, Buds School staff, palliative care nurses, Mahila Samakhya Society messengers, and school counselors under the Kishori Shakti Yojana will each receive ₹1,450.
• Anganwadi and Balavadi helpers and ayahs will also receive ₹1,450.

The Finance Minister emphasized that the government is committed to supporting its employees and pensioners, even amidst financial challenges. Despite financial constraints caused by central government policies, the state decided to enhance the allowances. The increased allowances and bonuses are intended to ensure that everyone can enjoy a little extra during the festive season.

In addition to the bonus and allowance increases, the Kerala government has also approved another installment of dearness allowance (DA) for state employees and teachers, as well as dearness relief (DR) for pensioners. These revised payments will be effective from September 1, and will also benefit staff covered under the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), and medical services. This move is expected to add approximately ₹2000 crore to the state's annual expenditure.

However, the state government has issued guidelines for bonus payments in public sector undertakings (PSUs). Loss-making companies are restricted to the statutory minimum bonus, and officials will be held personally liable for any excess payouts. Profit-making units may offer higher bonuses, but they cannot exceed 20% of wages or salary for the accounting year.