Kerala Government Faces Deadline Pressure from KAT to Clear Pending Dearness Allowance Dues

The Kerala Administrative Tribunal (KAT) has issued an order directing the state government to announce a deadline for the release of pending Dearness Allowance (DA) for its employees. The order comes in response to a petition filed by members of the Kerala NGO association, highlighting the non-payment of six instalments of DA since January 2021.

The bench, led by Chairman Justice CK Abdul Rahim, has instructed the government to make a decision on the release of the pending DA before December 11. The tribunal emphasized that regulatory hurdles and the financial crisis in the state should not impede the clearance of these dues.

The petitioners, led by association president Chavara Jayakumar, have been grappling with the non-release of funds despite repeated pleas to the government. The response received was that funds couldn’t be disbursed until the state overcame its ongoing financial challenges.

The tribunal’s interim order warns the state government that if it fails to announce the date for releasing the funds, the tribunal will set a deadline on its own. The next hearing for the petition is scheduled for December 11.

The petitioners cited a Supreme Court order that mandates the timely disbursement of pensions and dearness allowances, regardless of the government’s financial constraints. Advocate Anoop V Nair represented the petitioners in the case.

It’s worth noting that the state government would need to allocate over Rs 24,000 crores to clear the pending DA dues for its employees. While employees are entitled to a twenty-five percent DA, they have been receiving only seven percent since July 2020. In contrast, the central government increased DA for its employees from 42 percent to 46 percent in October 2023. The KAT order puts pressure on the Kerala government to address the long-pending issue of unpaid Dearness Allowance.