‘DA not employees’ right; govt not in a financial position to grant it’: Kerala informs HC

The government has informed the High Court that dearness allowance (DA) is not employees’ right and is instead part of an administrative decision. DA is not a legally mandatory benefit. In its affidavit submitted to the court, the government explained that it is not currently in a financial position to specify a timeframe for disbursing DA.

The affidavit was filed by K A Navas, Under Secretary, Finance Department, through Special Government Pleader P K Babu. The government is currently following a new method for granting DA. As per this, the additional DA takes effect only from the month in which it is sanctioned. This does not apply to DA arrears.

The Centre’s policies have caused a shortage of funds in the State. A petition challenging the Centre’s restrictions on the State’s borrowing limit is pending before the Supreme Court. The Centre has also rejected the State’s request to borrow ₹26,226 crore. These matters are before the Supreme Court. If the Supreme Court issues a favourable order, the government will reconsider the matter of DA arrears.

DA forms part of the government’s policy decisions. It is granted to help address inflation. The Supreme Court has clarified that the court’s intervention in such matters should be limited. The decision must consider the government’s financial situation.

The petition also pointed out that in the appeal filed by the West Bengal Government, the Supreme Court only stated that employees should not be left waiting indefinitely for DA and that it did not order the government to pay the allowance.

The affidavit further states that the Union Government had withheld DA from January 1, 2020 to June 30, 2021. This arrear has not been paid yet.

The petition before the court was filed by N Mahesh, state president of the Federation of University Employees Organisations, and office-bearers, seeking payment of the pending DA.

Justice N Nagaresh considered the petition on Thursday, but in view of the inconvenience of the government pleader, the hearing was adjourned to January 22. Employees are owed 15 per cent DA arrears over six instalments from July 2023.