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DA hike to Kerala Government Employees @ 2% with effect from 01.07.2016

        Government have issued orders revising the Dearness Allowance to State Government Employees and Dearness Relief to State Service Pensioners/Family Pensioners with effect from 01/01/2017.

Salary : -
        The rate of Dearness Allowance payable in respect of State Government Employees, Teachers, Staff of Aided Schools, Private Colleges and Polytechnics, Full time Employees borne on the contingent and work charged establishments and employees of Local Bodies will be enhanced from the existing rate of  12 % to 14 % w.e.f . 1.1.2017

        The Dearness Allowance payable in respect of those employees continuing in the per-revised scale of G.O(P) No.85/2011/Fin dated 26/02/2011  will be enhanced from the existing rate of  104% to 108% w.e.f. 1.1.2017.

        The Dearness Allowance at the enhanced rates will be paid in cash with the salary for the month of April 2017 onwards. The arrears for the period from 01.01.2017 to 31.03.2017 will be drawn and credited to the Provident Fund Account of the employees along with the salary bill for any of the months from April 2017 onwards.
        No withdrawal other than final withdrawal of arrears of Dearness Allowance credited to Provident Fund Account shall be made before 01.01.2022 or retirement, whichever is earlier and is applicable. The enhanced rate of Dearness Allowance will also be applicable to Part-time and Part-time contingent employees on the basis of pay drawn by them.

Pension :-
        The Dearness Relief payable to State Service Pensioners and Family Pensioners (whose pension/family pension has been revised as per G.O.(p) No.9/2016 fin, dated 20.01.2016) will be enhanced from the existing rate of  12% to 14 % with effect from 1.1.2017
            The enhanced rate of Dearness Relief due from 01.01.2016 will be paid along with the pension for May 2017 and arrears from January 2017 to March 2017 will be released in cash along with the pension for May 2017.

Health Insurance Scheme to Kerala state Employees & Pensioners

                Government have accorded sanction for implementing Health Insurance Scheme for State Government Employees,Pensioners and Family Pensioners.For details view 
                Tenth Pay Revision Commission has recommended to introduce Health Insurance Scheme for employees and pensioners in the State. Based on this Government vide order G.O (P) No. 9/2016/Fin dated 20/01/2016 has ordered to introduce Medical Insurance Scheme to pensioners/family pensioners. In the Budget Speech 2017-18 honourable Minister (Finance) has announced that the Health Insurance Scheme will be implemented during 2017-18.
                In the circumstances, Government are pleased to accord sanction for implementing Health Insurance Scheme for State Government employees, pensioners and family pensioners. The premium of the employee will be deducted in installments from their salary. The premium for pensioners/family pensioners shall be adjusted against the medical allowance now given. For pensioners who are not eligible for medical allowance in full or part (Part time contingent employees etc) the premium may be collected from them as the case may be. Health Insurance Scheme shall be implemented through the insurance company approved by IRDA, after a competitive bidding process, by giving preference to public sector insurance company.
                The detailed order regarding the scheme will be issued separately.

Pay Revision 2014- Payment of First installment of Arrears-Revised

               As per GO(P) No.7/2016/Fin dated 20.01.2016, orders have been issued revising pay and allowance of State Government Employees and teachers with effect from 01.07.2014 wherein it has been ordered that the amount of arrears on account of pay revision will be paid in cash in 4 installments on 01.04.2017, 01.10.2017,01.04.2018 and 01.10.2018 respectively along with interest on the arrears not drawn as on the above dates at the rate admissible on the GPF. Government are now pleased to order that the arrears amount fell due for payment on 01.04.2017 will be credited to Provident fund account of the employees.

               Interest@ 8.7% for the period from 01.02.2016 to 31.03.2017 will be admissible for the first installment of arrears. Arrears can be preferred on nil bill also, if necessary, as special case, for convenience.