Tamil Nadu to pay Rs 3,637 crore in DA arrears to transport pensioners

The Tamil Nadu government has sanctioned the payment of Rs 3,637 crore in Dearness Allowance (DA) arrears to approximately 98,000 pensioners and family pensioners of state transport undertakings. The decision follows a protracted legal dispute regarding the denial of DA hikes that were previously granted to other government and public sector employees.

The Madurai Bench of the Madras High Court ruled in March 2023 that retired transport corporation employees are entitled to DA rates applicable to serving employees. Following various legal appeals and the eventual dismissal of those proceedings, the government issued an order on August 31 to settle the arrears in 49 monthly instalments. The first 48 instalments will be Rs 75 crore each, with a final payment of Rs 37 crore in the 49th month.