23 June,2026 02:29 PM IST | Mumbai | mid-day online correspondent
Pratap Sarnaik. Pic/X
In a major relief for nearly 86,000 employees of the Maharashtra State Road Transport Corporation (MSRTC), the Maharashtra government has approved an increase in dearness allowance (DA), house rent allowance (HRA) and annual salary increments, bringing them in line with benefits available to state government employees.
The announcement was made in the state legislature on Monday by Transport Minister and MSRTC Chairman Pratap Sarnaik.
Speaking in both Houses of the legislature, Sarnaik said the decision followed discussions with employee unions held on June 22. The meeting was convened after a suggestion by Deputy Chief Minister Eknath Shinde and focused on long-pending demands raised by employees.
Sarnaik said MSRTC has played a critical role in providing public transport services across Maharashtra for more than eight decades and that its workforce has been instrumental in maintaining operations under challenging conditions.
He noted that employees have continued to perform their duties during adverse weather conditions and other difficult situations, ensuring uninterrupted transport services for passengers across the state.
Under the revised pay structure, the dearness allowance has been increased from 53 per cent to 58 per cent. The house rent allowance has been revised from the existing 8-16-24 per cent structure to 10-20-30 per cent. In addition, the annual salary increment rate has been increased from 2 per cent to 3 per cent.
According to the transport minister, the revised benefits will result in an additional financial burden of approximately Rs 45 crore per month on the transport corporation.
Despite the added expenditure, the government has decided to implement the revised benefits in response to employees' demands and to improve workforce morale, Sarnaik said.
The minister also said the government would make efforts to address pending employee dues estimated at around Rs 5,649 crore. These include arrears related to dearness allowance, house rent allowance, annual increments and other statutory payments.
Sarnaik credited Chief Minister Devendra Fadnavis, Deputy Chief Ministers Eknath Shinde and Ajit Pawar for supporting the decision. He also acknowledged the role played by employee unions and legislators who had consistently raised the issue before the government.
Among those mentioned were legislators Gopichand Padalkar, Sadabhau Khot, Anil Parab, Bhai Jagtap and Pravin Darekar, along with members of the employees' action committee.
Following the government's decision, employee unions have decided to withdraw a protest that had been scheduled for June 29.
Sarnaik described the development as a positive outcome of dialogue between the government and employees. He said the administration remains committed to strengthening MSRTC financially, modernising its operations and improving passenger services while addressing employee welfare concerns.
