DA Hike – Dearness Allowance is a cost-of-living adjustment given to government employees and pensioners to help them deal with inflation.
DA Hike: In a major relief to the employees of Maharashtra State Road Transport Corporation (MSRTC), Deputy Chief Minister Eknath Shinde on Tuesday announced a 7% hike in dearness allowance (DA). This took it from 46% to 53%. The revised DA will come into effect from June 2025 and is expected to benefit around 87,000 employees of the state-run transport undertaking.
What is the detail
Dearness Allowance is a cost-of-living adjustment given to government employees and pensioners to help them deal with inflation. It is calculated as a percentage of the basic pay and is revised from time to time based on changes in the Consumer Price Index. The announcement was made after a high-level meeting chaired by Shinde and newly appointed Transport Minister Pratap Sarnaik. The meeting was attended by senior officials of the state transport department, MSRTC and representatives of ST employees’ unions. The key issues discussed included the long-pending DA revision and medical insurance schemes for employees.
Another big relief
After the meeting, Shinde said, “ST employees will get 53% DA from June 2025. They will also have the option to choose either the Mahatma Phule Jan Arogya Yojana or the Dharmaveer Anand Dighe Medical Reimbursement Scheme for healthcare. Besides, each employee will be covered under an accident insurance policy of ₹1 crore.” Sweetening the deal for MSRTC employees, Shinde announced that retired employees and their spouses will now be entitled to free travel passes for 12 months, up from the current nine months. The move is expected to benefit around 35,000 retired personnel. The deputy CM also directed MSRTC to start cargo services by converting bus depots into logistics hubs to increase revenue generation for the loss-making company. With this DA hike and extended benefits, the state government hopes to boost morale among MSRTC employees, who have staged several protests in recent years demanding better wages and working conditions.
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