7th Pay Commission: Government Hikes Dearness Allowance by 6%

According to a top official on Wednesday, the Maharashtra government has sanctioned a 6% increase in the dearness allowance for employees at the Maharashtra State Road Transport Corporation (MSRTC).

According to Shekhar Channe, vice chairman and managing director of MSRTC, the government has approved raising the DA from the current 28 percent to 34 percent.

The increase will cost the state-owned public transportation company Rs 15 crore per month in additional expenses. A union leader named Shrirang Barge remarked that despite the decision's four-month delay, they were pleased with it.

According to Barge, "MSRTC staff should also receive arrears on their dearness allowance as the state government had previously failed to pay it."

There are more than 80,000 people working for the company. Employees at MSRTC went on strike for more than five months last year in support of a number of demands, including the merger of the company with the state government.

With a fleet of more than 16,000 buses, MSRTC is one of the largest state-owned public transportation companies in the nation.

Updates on 4% DA Hike:

The Union government on September 28, 2022, announced a hike in dearness allowance (DA) as part of a series of cabinet decisions. The department of Expenditure (DoE) issued ab office memorandum announcing the revision in DA on October 3, 2022.  

According to a press release from the Press Information Bureau on September 28, 2022, the additional financial effects of this increase are estimated to be Rs. 6,591.36 crores per year and Rs. 4,394.24 crores in the fiscal year 2022–23 (i.e., for a period of 8 months from July 2022 to February 2023).