In a significant development concerning the long-pending demands of State Government employees, the Kerala Administrative Tribunal (Additional Bench, Ernakulam) has directed the State Government to clarify its position on the payment of arrears of Dearness Allowance (DA) due from January 1, 2021.

The Original Application (OA No. 1724/2023), filed by the Kerala NGO Sangh and four other applicants, sought a clear timeline for disbursal of the outstanding DA amounts. The applicants, represented by senior advocate Dr. K.P. Satheesan and a team of legal counsels, urged the Tribunal to issue an interim direction compelling the government to expedite the payment of DA arrears.

During the hearing, the Tribunal, comprising Hon'ble Justice P.V. Asha (Judicial Member) and Hon'ble Dr. Pradeep Kumar (Administrative Member), acknowledged that two instalments of DA/DR had been sanctioned during the current financial year—one effective from April 2024 and another from October/November 2024. Additionally, the Finance Minister's 2025 Budget Speech assured the sanctioning of another DA instalment, with disbursal to commence in April 2025.

However, the Tribunal noted that the core grievance remains unresolved: the non-payment of DA from 1.1.2021 onwards. While the government has cited financial constraints as the primary reason for the delay, the Tribunal emphasized that DA is an integral part of an employee's salary and cannot be indefinitely withheld.

In its order dated March 25, 2025, the Tribunal directed the second respondent (Finance Department) to file a detailed statement indicating when and how the arrears—either in full or in part—will be cleared. The matter has been posted for further hearing after the court holidays.

This order comes as a partial victory for government employees and pensioners who have long awaited clarity on their dues. With mounting pressure from staff unions and employee organizations, the ball is now in the government's court to act decisively.