In economics consumption denotes the use of goods and services by households. It is distinct from consumption expenditure which is the purchasing of goods and services for household use. Consumption is an important economic activity which has a major role in both micro and macroeconomics. It is the beginning of all economic activities. Consumption is positively related to income. Household consumption data helps economists to understand spending behavior, changes happened overtime and other economic variables. Adam Smith opined that consumption is the sole purpose of all production. Among Indian states Kerala stands out in consumption pattern in many ways. As per the data of NSSO Kerala holds the top position in consumption expenditure in India (NITI Aayog 2017). Kerala figures first in average monthly consumption expenditure in both urban and rural areas. Employees constitute a significant section in consumption process. This particular study focuses on public sector employees and private sector employees. Covid 19 pandemic has affected almost all categories of people. So, this particular study aims to find out the consumption pattern of employees and impact of covid 19 on them

Key Words: Consumption Function, Household Consumption, Employees, Permanent Income, Covid 19