Dearness Allowance: MSRTC employees get 5% DA hike; employee unions demand payment of arrears — Here's all we know

Dearness Allowance: Maharashtra has increased the DA for Maharashtra State Road Transport Corporation (MSRTC) employees by 5%, from 53% of basic pay to 58%, aligning it with the allowance received by other state government employees, according to a PTI report.

State transport minister Pratap Sarnaik announced it on 11 June. Notably, employee unions are demanding that the state also clear DA arrears by June-end, the report added.

MSRTC DA hike to burden state by ₹13.75 crore

Sarnaik also serves as chairman of the state-run transport corporation. He said the 5% DA hike and the decision to pay House Rent Allowance (HRA) arrears will impose additional burdens of ₹13.75 crore and ₹100 crore, respectively, on the MSRTC.

These decisions are significant as the MSRTC is India's largest state-owned public transport corporation. With a fleet of 15,000+ buses and over 86,000 employees, it transports more than 55 lakh passengers daily. Notably, the corporation is facing financial strain.

What are MSRTC employee unions' demands?

The minister met with leaders of the Maharashtra State Transport Kamgar Sanghatana Kruti Samiti, which is a joint action committee (JAC) of employee unions, to discuss their demands.

After the meeting, Sarnaik said that the state has agreed to pay ₹100 crore towards long-pending HRA arrears. “As the financial condition of ST improves, we will fulfil the employees' legitimate financial demands in a phased manner. I appeal to the unions to withdraw their agitation. I sincerely request that passengers should not be made to suffer,” he said.

However, the JAC has reiterated that it will continue its protest — a "chakka jam" to be held near June-end — if the DA arrears are also not cleared by the month's end. Shrirang Barge, a leader of the ST employees, said they were disappointed that the minister did not provide any assurance regarding the payment of DA arrears.

DA revision, salary revision in phases: Sarnaik

The report added that during the meeting, the minister directed the administration to ensure that any future revised DA and salary hikes are extended to state transport employees immediately.

Sarnaik also reportedly said that pending salary revision arrears would be paid in phases, keeping the corporation's financial condition in mind. He also assured the unions that a meeting with the chief minister and both deputy chief ministers would be arranged.

MSRTC financial stress: Seasonal fare hike to continue

Faced with rising fuel prices, higher employee costs and financial stress, the MSRTC will continue its 10% seasonal fare hike for ordinary bus services for another month, till midnight of July 15, according to another PTI report.

The seasonal fare hike started from 15 April and was originally set to end on 15 June with aim to augment revenue during the summer travel season.

Under the revised arrangement, the stage fare for ordinary and midi bus services will continue at ₹11.05 per stage. The minimum fare will remain unchanged at ₹14 for adults and ₹7 for children.

(With inputs from PTI)