Tamil Nadu Approves Rs. 3,637 Crore DA Arrears for 98,000 Transport Pensioners

Tamil Nadu Approves Rs. 3,637 Crore DA Arrears for 98,000 Transport Pensioners

The Tamil Nadu government has issued an order to pay Rs. 3,637 crore in long-pending Dearness Allowance (DA) arrears to around 98,000 pensioners and family pensioners who retired from the state-owned transport corporations.

According to the government order issued by the Transport Department on August 31, 2026, the pending DA arrears will be paid in 49 monthly instalments. The government has decided to provide Rs. 75 crore per month for the first 48 months, while the remaining Rs. 37 crore will be paid in the 49th and final month.

The issue of DA for transport corporation pensioners has been pending for several years. The pensioners had been seeking DA revisions equivalent to the increases provided to employees who are currently in service.

In a case related to the issue, the Madurai Bench of the Madras High Court ruled on March 2, 2023, that the DA rates applicable to serving employees should also apply to transport corporation pensioners.

Following the judgment, further legal proceedings, including appeals, were dismissed. Court proceedings subsequently continued regarding the payment of the accumulated arrears.

The government had initially proposed paying the arrears in 60 instalments. However, the High Court advised that the government make payments at the rate of Rs. 75 crore per month. Following this, the government decided to settle the arrears through 49 instalments.

The exact amount payable to each pensioner will be determined after the necessary verification and audit process. The government order states that the transport corporations should arrange the required funds from their own financial resources.

If necessary, the transport corporations may also obtain loans from the government or through the Tamil Nadu Transport Development Finance Corporation to arrange the funds required for the payment.

The decision provides a structured payment schedule for the long-pending DA arrears owed to approximately 98,000 transport pensioners and family pensioners across Tamil Nadu.