A view of the Supreme Court. Photo: Aashish Aryan
The Supreme Court on Thursday observed state governments are not bound to increase the dearness allowance (DA) of their employees in line with the Centre's periodic revisions, a law website reported.
The Tamil Nadu Electricity Board had appealed before the apex court against a Madras High Court order that directed the board to pay employees DA of 49 per cent, at par with those who work in the Central government.
The board applealed before the apex court that paying a revised Dearness Allowance to more than 80,000 of its employees would have a huge financial implication on the Board, Livelaw.in reported
Payin dearness allowance would depend upon the ability and the financial position of the employer, the Supreme Court observed. The Supreme Court said the High Court had "erred" in its judgment.