'DA not employee's right but policy decision': Govt tells HC in response to university staff plea to release arrears
The government cites financial constraints and policy decisions as reasons for potential delays in dearness allowance payments to employees.
The government cites financial constraints and policy decisions as reasons for potential delays in dearness allowance payments to employees.
The government cites financial constraints and policy decisions as reasons for potential delays in dearness allowance payments to employees.
The CPM-led LDF government, known for its pro-employee stance, has submitted before the Kerala High Court that disbursement of dearness allowance (DA) shall not be considered as a right of an employee and that it is not a compulsory statutory benefit. The statement, which could rile up the government employees, has been filed in the counter-affidavit submitted in the HC against the petition of a group of non-teaching staff of various universities.
The petitioners moved the HC with a plea to implement the overdue revision of DA with effect from January 1, 2021 in accordance with the formula linked to the All India Consumer Price Index (AICPI). In December 2025, the Government Pleader had sought additional time to file a counter-affidavit.
The Special Government Pleader had earlier highlighted the financial difficulties for the government to comply with the directions of the Supreme Court to release the payment. The Court, however, observed that since the release of the DA is an obligation of the government, the financial constraints cannot be a reason that should stand in the way of the statutory entitlement of the petitioners and other government servants. The HC had also directed the government to come up with a specific plan or timeline within which the obligations could be complied with.
The latest affidavit filed in the HC by the Under-Secretary, Finance Department said that the payment of pay & allowances, DA rests on the policy decision of the government which is taken depending upon its resources. It is the prerogative of the government to sanction such benefits to its employees, the affidavit pointed out.
The government also questioned the scope of judicial intervention in the matter, saying that DA disbursement involves a huge amount of financial liability and judicial intervention is possible to a limited extent.
Finance Minister K N Balagopal told Onmanorama that he is not aware of the contents in the affidavit. "I need to understand the circumstances in which such a statement was included. The government has always maintained that we have filed a case in the Supreme Court to receive a huge amount pending with the centre," Balagopal said.
The government has filed a suit before the Supreme Court challenging the centre's action that restricted the maximum possible borrowing power of the state and also the restrictions imposed on open market borrowing initiated by the state government.