MUMBAI: In a significant relief to Maharashtra State Road Transport Corporation (MSRTC) employees, deputy chief minister Eknath Shinde on Tuesday announced a 7% hike in Dearness Allowance (DA), raising it from 46% to 53%. The revised DA will come into effect from June 2025 and is expected to benefit nearly 87,000 employees of the state-run transport undertaking.
Dearness Allowance is a cost-of-living adjustment paid to government employees and pensioners to help offset inflation. It is calculated as a percentage of the basic salary and revised periodically based on changes in the Consumer Price Index.
The announcement came after a high-level meeting chaired by Shinde and newly appointed Transport Minister Pratap Sarnaik. The meeting was attended by senior officials from the state transport department, MSRTC, and representatives of ST employees’ unions. Key issues discussed included the long-pending DA revision and medical insurance schemes for employees.
“From June 2025, ST employees will receive 53% DA. They will also have the option to choose between the Mahatma Phule Jan Arogya Yojana or the Dharmaveer Anand Dighe Medical Reimbursement Scheme for healthcare. Additionally, each employee will be covered under a ₹1 crore accident insurance policy,” Shinde said after the meeting.
Further sweetening the deal for MSRTC staff, Shinde announced that retired employees and their spouses would now be entitled to free travel passes for 12 months, up from the current nine. This move is expected to benefit around 35,000 retired personnel.
The deputy CM also directed MSRTC to explore launching cargo services by converting bus depots into logistics hubs, in a bid to enhance revenue generation for the loss-making corporation.
With this DA hike and extended benefits, the state government hopes to boost morale among MSRTC staff, who have in recent years staged several protests demanding better wages and working conditions.