Kerala Government Announces Dearness Allowance Hike for UGC and AICTE Teaching Staff

The Kerala government has declared an increase in Dearness Allowance (DA) for teaching staff and Dearness Relief (DR) for pensioners under the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), and medical education schemes. The revised DA rates for teaching staff and DR for pensioners will be effective from October and November 2025, respectively.

This decision aims to benefit a substantial number of employees and pensioners throughout the state. The Finance Minister, K. N. Balagopal, stated that this move demonstrates the government's commitment to its employees and pensioners. This is the second DA installment that has been approved this year, with two installments also granted the previous year.

In March 2025, the Kerala government had already increased the Dearness Allowance (DA) for its employees and Dearness Relief to state service pensioners and family pensioners from 12% to 15%, effective from April 2025. The enhanced allowance was included with the salary and pension disbursements starting in May 2025. At that time, the DA for teaching staff under the UGC, AICTE, and Medical Education schemes who opted for the revised scale from January 1, 2016, was increased from 34% to 38%. For those teaching staff who continued with the sixth UGC, AICTE, and Medical Education scale from January 1, 2006, the DA was raised from 203% to 212%.

The recent increase in DA and DR for UGC, AICTE, and medical education staff and pensioners is expected to further provide financial relief and security to the beneficiaries, helping them cope with the rising cost of living. The government's consistent efforts to revise the DA and DR rates reflect its understanding of the financial needs of its employees and pensioners.

The Kerala government has emphasized its dedication to honoring pay revision promises, even amidst financial constraints experienced during the Covid years, including the payment of DA in cash from the beginning of the 2021-22 financial year. Approving another installment of dearness allowance (DA) for state employees and teachers, and dearness relief (DR) for pensioners, the revised payments will take effect from salaries and pensions due on September 1. The move is expected to add approximately Rs 2000 crore to the state's annual expenditure.