Politics Thiruvananthapuram Kerala (KL)

Kerala announces Onam bonus of ₹4,500, festival allowances and advance facility for staff

The Kerala government has approved an Onam bonus of ₹4,500 for eligible employees, several festival allowances for other categories and an Onam advance of up to ₹20,000, finance department orders show. Distribution begins on August 17 and payments must be completed by March 31, 2027.

Kerala announces Onam bonus of ₹4,500, festival allowances and advance facility for staff
©Illustration AI Thomas Varghese / we-news.com

Thiruvananthapuram: The Kerala government has sanctioned an Onam bonus of ₹4,500 for eligible state employees and a range of special festival allowances for other categories, and has authorised an Onam advance facility of up to ₹20,000, according to orders issued by the finance department.

Who qualifies for the ₹4,500 bonus

The finance department order specifies eligibility by pay revision bands and salary ceilings as on March 31, 2026. Employees covered under the 11th Pay Revision whose total salary on that date did not exceed ₹49,275, and those under the 10th Pay Revision with salary up to ₹44,462, will receive the Onam bonus of ₹4,500.

General qualifying conditions include being in service on March 31, 2026, and having completed at least six months of continuous service. The orders also allow those who retired or were relieved from service on or before March 31, 2026, to be eligible provided they had completed the required period of service.

Festival allowances for other employees and pensioners

Employees who do not meet the criteria for the bonus will be eligible for a special festival allowance of ₹3,000. The government has also fixed several lower-tier allowances for specific categories, and a separate festival allowance for pensioners.

  • Special festival allowance (non‑bonus eligible): ₹3,000
  • Several categories (daily‑wage, certain contract workers, SC/ST promoters): ₹1,460
  • ASHA, anganwadi and balawadi teachers/workers, helpers, ayahs, palliative care nurses and certain others: ₹1,450
  • School counsellors: ₹1,390
  • Several other categories (MLA additional staff, some honorary teachers): ₹1,350
  • Pensioners: ₹1,250

The orders make clear that an individual employee will be entitled to only one of the two benefits — either the Onam bonus of ₹4,500 or the special festival allowance applicable to those who do not qualify for the bonus.

Advance facility and recovery schedule

The government has authorised an Onam advance of up to ₹20,000 for employees and personal staff of ministers, with the facility to be available from 20 August 2026. Employees seeking a smaller amount may apply in multiples of ₹1,000.

Recovery of the advance will be effected through salary deductions in five equal monthly instalments beginning in October 2026.

Payment timetable and administrative direction

Distribution of both the bonus and the various festival allowances is scheduled to begin on 17 August 2026. The finance department has directed that all disbursements should be drawn and paid by 31 March 2027, allowing departments and payroll units a defined window to process payments and advances.

Benefit Amount Eligible groups
Onam bonus ₹4,500 Employees under 11th PR (salary ≤ ₹49,275) and 10th PR (salary ≤ ₹44,462), with ≥6 months continuous service as on 31 Mar 2026
Special festival allowance ₹3,000 Employees not qualifying for bonus
Category/nominal allowances ₹1,250–₹1,460 (various) Daily‑wage, contract categories, ASHAs, anganwadi staff, pensioners, counsellors, others
Onam advance Up to ₹20,000 Employees and personal staff of ministers; recoverable in 5 instalments from Oct 2026

Practical points for employees and pensioners

Employees should check their pay revision status (10th or 11th PR) and total pay as recorded on 31 March 2026 to determine bonus eligibility. Those considering the Onam advance should note the start date for applications and the recovery period commencing in October.

Payroll and accounts units in departments, aided educational institutions and pension disbursing agencies will need to coordinate to ensure timely drawing and payment within the period allowed by the finance department orders.

The decision brings forward the annual festival support measures the state issues before Onam, aimed at providing liquidity to government staff, pensioners and a range of frontline and contractual workers who are traditionally covered under such schemes.

Thomas Varghese is the Kerala correspondent for WE NEWS.

Thomas Varghese
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