Kerala Administrative Tribunal orders Govt. to provide relief on DA despite financial crisis claims

KOCHI/THIRUVANANTHAPURAM: The Kerala Administrative Tribunal (KAT) has directed the state government to inform employees by December 11 regarding the payment of dearness allowance arrears. The tribunal clarified that the government's financial constraints or restrictions do not apply in this case.

President of the Kerala NGO Association, Chavara Jayakumar and General Secretary A.M. Jafar Khan have requested the receipt of six installments of dues starting from January 2021. In a petition filed by Jafar Khan and others, KAT Chairman Justice C.K Abdul Rahim issued an interim order. This decision is expected to bring relief to approximately five and a half lakh government employees.

If the government fails to provide written notification about paying the arrears, the tribunal will set a date independently. The matter is scheduled to be re-examined on December 11. Dearness allowance is pending from January and July 2021, January and July 2022, and January and July 2023. Despite demands made to the government, the response cited the financial crisis as the reason for non-payment. The petitioners approached the KAT through their representative, Adv Anoop V Nair.

The government may face difficulties if the administrative tribunal mandates payment of dearness allowance dues to government employees and teachers. No remunerations from pay revisions have been disbursed.

Dearness allowance is intended to alleviate the cost-of-living crisis calculated as a fixed percentage of basic pay. Until 2019, 28% of DA was merged into salaries. Subsequently, a 4% DA increase occurred on January 1, 2020 followed by an additional 3% in July. Upon the implementation of salary revisions in 2021, a 7% DA increase was received. However, government employees and teachers have only received this increment to date. Following this, there were six instances where an 18% DA increase was due but was not granted. If all increments were paid, a total of 25% of basic pay along with DA pay, would have been disbursed.

Current monthly DA loss varies according to employees' basic pay

- Office Attendant with a basic salary of Rs 23,000 experience a loss of Rs 4,140.

- LD Clerk earning Rs 26,500 faces a loss of Rs.4,770.

- Pay the Head Clerk with a salary of Rs 39,300 incurs a loss of Rs 7,074.

- Senior Superintendent earning Rs.56,500 suffers a loss of Rs.10,170. (These figures fluctuate with variations in basic pay.)

At 18% of basic pay, an estimated 5,45,000 government employees are collectively owed around Rs 30,000 crore.

"This interim order suggests that the government, amidst its indulgences and celebrations, may evade paying DA dues under the pretext of a financial crisis."

- A.M. Jafar Khan, General Secretary, NGO Association