State Transport Corporation Employees to Receive 53% Dearness Allowance from June – Deputy Chief Minister Eknath Shinde Announces

Mumbai : Deputy Chief Minister Eknath Shinde announced that, beginning June 2025, employees of the State Transport Corporation will receive a 53% dearness allowance on their basic pay instead of the current 46%. He also declared that corporation staff may choose between the Mahatma Phule Jan Arogya Yojana or the Dharmaveer Ananda Dighe Medical Reimbursement Scheme, that accidental insurance coverage of ₹1 crore will be provided to employees, and that retired employees will now receive a free travel pass valid for 12 months instead of nine.

The announcement was made at a meeting of representatives from various ST employee organizations held at Sahyadri Atithigruh. Present were Deputy Chief Minister Shinde, Transport Minister Pratap Sarnaik, MLA Sadabhau Khot, former MP Anandrao Adsul, Captain Abhijeet Adsul, Department of Transport Additional Chief Secretary Sanjay Sethi, ST Corporation Vice Chairman Madhav Kusekar, and leaders of several unions.

Deputy Chief Minister Shinde said the ST bus service—vital for the public—must provide reliable, high-quality transport. He stressed that bus depots and terminals must be kept clean, with priority given to maintaining restrooms and waiting rooms. He urged the corporation to develop cargo services alongside passenger transport. He called on ST officials to study ways to make bus terminals into full-fledged “bus ports” to increase profitability. He emphasized the need to change the prevailing outlook toward ST and work toward making it more effective and sustainable.

Representatives of the employee organizations presented various demands, including proposals to increase ST revenue and conserve fuel. Currently, ST employees receive a 46% dearness allowance on their basic pay; from June 2025, that allowance will rise to 53%. Any arrears in dearness allowance will be decided once funds are available, Deputy Chief Minister Shinde said.

Under the integrated Mahatma Jyotirao Phule Jan Arogya Yojana and Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana, employees can avail up to ₹5 lakh in cashless medical benefits. In addition, the Dharmaveer Ananda Dighe Medical Reimbursement Scheme has been launched. Employees may choose either scheme.

A memorandum of understanding has been signed with the State Bank of India to provide accidental insurance coverage to ST employees whose salary accounts are held with SBI. Coverage applies whether they are on duty or off duty. In case of death due to a personal accident, the insurance payout will be ₹1 crore; in case of total disability, ₹1 crore; in case of partial disability, up to ₹80 lakh.

Deputy Chief Minister Shinde also announced that retired ST employees and their spouses will receive free travel passes for one year, benefiting approximately 35,000 retirees.