Supreme Court Ruling Puts Govt’s Differential Treatment Plan for Pensioners Under Scanner!
C. Srikumar, veteran leader of Central Government Employees also reiterated the long-pending demand for the release of 18 months’ DA arrears that were frozen during the COVID-19 period
The Central Government’s reported move to frame separate benefit structures for serving employees and pensioners has hit a significant roadblock following a landmark judgment by the Supreme Court of India.
In a strongly worded ruling, the apex court held that inflation impacts both serving employees and pensioners equally, making any differential treatment in inflation-linked benefits arbitrary and unconstitutional. The Court observed that fixing a higher rate of dearness allowance (DA) increase for serving employees compared to pensioners violates Article 14 of the Constitution, which guarantees equality before law.
No Discrimination in Dearness Benefits
The judgment clearly states that:
- Inflation does not discriminate between employees and pensioners
- Differential DA rates for the two categories are arbitrary
- Such classification is violative of Article 14
This observation is expected to have far-reaching implications, particularly in the context of the upcoming 8th Central Pay Commission (8th CPC).
Pensioners Demand Inclusion in 8th CPC
Reacting to the ruling, veteran Central Government employees’ leader C. Srikumar termed it a “historic victory” for pensioners across the country.
He said the present government has excluded existing pensioners from the Terms of Reference (ToR) of the proposed 8th CPC, calling it a clear violation of constitutional provisions.
“This judgment is a victory not only for KSRTC pensioners but for all pensioners. The government cannot discriminate between serving employees and retirees in matters of wage and pension revision,” Srikumar said.
He further stated that the AIDEF and National Council (JCM) will formally approach the government and the 8th CPC to amend the Terms of Reference and include pensioners’ demands.
Legal Challenge to Finance Bill Provision
Srikumar also pointed out that the government has taken legislative backing through the Finance Bill to decide the extension of Pay Commission benefits to pensioners at its discretion. This provision, he said, has already been challenged in the Supreme Court of India.
He expressed hope that the Court would strike down what he termed as “anti-pensioner provisions.”
Demand for DA Arrears Revival
The leader also reiterated the long-pending demand for the release of 18 months’ DA arrears that were frozen during the COVID-19 period for both employees and pensioners.
