DA Hike: The Supreme Court (SC) of India has delivered a landmark judgment, providing much-wanted relief to pensioners in the context of dearness allowance (DA) hike.
The SC bench of justices Manoj Mishra and Prasanna B Varale dismissed the appeals filed by the Kerala State Road Transport Corporation (KSRTC) and the State of Kerala. In its order, the SC ruled that inflation affects both retired and serving employees “equally.”
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DA Hike-SC Verdict
The Supreme Court was hearing a matter dating way back to 2021 when the Kerala government and KSRTC justified a reduction in DA for pensioners compared to serving employees. They categorized serving and retired workers into different categories, terming it as a policy matter.
At that time, pensioners used to receive 11 percent DA and serving employees were receiving 14 percent DA.
In its ruling, the Supreme Court rejected the arguments of the KSRTC and the Kerala government. The SC ruled that financial constraints could never be a basis to violate an individual’s constitutional rights. It also contended that any such discrimination is a clear and direct violation of the Indian Constitution’s Article 14 (Right to Equality).
In its final ruling, the SC upheld decision of the Kerala High Court and directed the Kerala State Road Transport Corporation to pay dearness allowance to pensioners at the same rate as that to the corporation’s serving employees.
Relief To Thousands Of Retired Employees
Kerala’s retired government employees expressed delight at the Supreme Court verdict. They hailed the verdict as equitable, fair and transparent, saying that KSRTC was indeed wrong to discriminate between serving and retired employees as the high cost of living does impact everyone, whether serving or retired.
A detailed order by Supreme Court in this matter is expected to be issued soon. The order will detail how the arrear and future payments should be made to the pensioners.
