MSRTC salary hike 2025: DA raised to 58%, HRA revised, ₹45 crore monthly burden
Synopsis
Maharashtra's Transport Minister Pratap Sarnaik announced a sweeping MSRTC pay revision during the monsoon session — DA up from 53% to 58%, HRA slabs raised across city tiers, and annual increments improved from 2% to 3%. The relief comes after years of strikes and protests, but adds ₹45 crore a month to an already cash-strapped corporation.
Key Takeaways
Transport Minister Pratap Sarnaik announced the hike on 23 June 2025 during the Maharashtra monsoon legislative session.
Dearness Allowance for MSRTC employees raised from 53% to 58% — a 5 percentage point increase.
HRA slabs revised upward from 8%, 16%, 24% to 10%, 20%, 30% based on city tier.
Annual salary increment improved from 2% to 3% per year.
The hike will add ₹45 crore per month to MSRTC's expenditure.
Government also declared a zero-tolerance policy against private buses carrying illegal parcels and cargo.
Maharashtra State Road Transport Corporation (MSRTC) employees received a significant financial boost on Tuesday, 23 June 2025, as the state government approved a comprehensive hike in Dearness Allowance, House Rent Allowance, and annual increments. The announcement was made by Transport Minister Pratap Sarnaik during the ongoing monsoon session of the Maharashtra state legislature, drawing widespread celebration across the corporation's workforce.
Key Salary Revisions Announced
The Dearness Allowance (DA) for MSRTC employees has been raised by 5 percentage points, moving from 53% to 58%. The revision in House Rent Allowance (HRA) is equally significant — the previous slabs of 8%, 16%, and 24% have been upgraded to 10%, 20%, and 30% respectively, calibrated by city tier.
Additionally, the annual salary increment rate has been improved from 2% to 3%, offering employees a more meaningful year-on-year pay progression. Together, these measures represent the most substantial revision to MSRTC compensation structures in recent memory.
Financial Impact on MSRTC
The combined hike is expected to add ₹45 crore per month to MSRTC's expenditure, a substantial strain on a corporation already under fiscal pressure. Minister Sarnaik acknowledged the financial burden but maintained that employee welfare and fair rights took precedence over short-term fiscal considerations. 'The financial load on the corporation was secondary to ensuring justice and fair rights for its employees,' he said in the Legislative Assembly.
Background: A History of Grievances
MSRTC employees have long complained about inadequate pay scales, insufficient DA corrections, and poor working conditions. The corporation has seen multiple rounds of strikes and protests over the years, with workers demanding structural salary reforms. This decision directly addresses those long-standing demands. Notably, this is not the first time MSRTC has faced labour unrest — a prolonged strike in 2021–22 lasting several months had paralysed bus services across Maharashtra, underscoring the depth of employee discontent.
Warning on Illegal Private Transport
Separately, Minister Sarnaik used the legislative session to issue a firm warning to the private transport sector. The government has adopted a zero-tolerance policy against private buses found transporting illegal parcels and cargo. Operators found in violation will face stringent legal action, he cautioned — a signal that the government intends to tighten oversight of unregulated freight movement on state roads.
What Comes Next
With the revised allowances now approved, implementation timelines and disbursement schedules are expected to be worked out by MSRTC administration in the coming weeks. The ₹45 crore monthly outgo will test the corporation's ability to manage its finances without additional state support, and stakeholders will be watching closely to see whether the government provides a corresponding budgetary cushion.
Point of View
Not a healthy balance sheet. The government has prioritised labour peace over fiscal discipline, which is understandable given the 2021–22 strike's scale, but the question of where the money comes from remains unanswered. Without a corresponding state subvention or revenue improvement plan, this hike risks deepening MSRTC's debt spiral rather than resolving it. The zero-tolerance warning on illegal private cargo is also worth watching: if enforced seriously, it could shift freight revenue back toward MSRTC, providing at least a partial offset.
NationPress
23 Jun 2026
Frequently Asked Questions
What salary hike has the Maharashtra government approved for MSRTC employees?
The Maharashtra government has approved a hike in Dearness Allowance from 53% to 58%, revised HRA slabs upward to 10%, 20%, and 30% by city tier, and raised the annual increment rate from 2% to 3%. The announcement was made by Transport Minister Pratap Sarnaik on 23 June 2025 during the state legislature's monsoon session.
How much additional financial burden will the MSRTC hike create?
The combined salary and allowance revision will add ₹45 crore per month to MSRTC's expenditure. The corporation is already under significant fiscal stress, and the government has not yet detailed a specific budgetary cushion to offset this increase.
Why have MSRTC employees been demanding salary revisions?
MSRTC employees have historically complained about low pay scales, inadequate DA corrections, and poor working conditions. The grievances have led to multiple strikes and protests over the years, including a prolonged strike in 2021–22 that disrupted bus services across Maharashtra for several months.
What is the government's new policy on private transport operators?
Transport Minister Pratap Sarnaik announced a zero-tolerance policy against private buses found transporting illegal parcels and cargo. Operators in violation will face stringent legal action under applicable laws.
When will the revised MSRTC allowances come into effect?
The allowances have been approved by the state government, but specific implementation timelines and disbursement schedules are yet to be announced by MSRTC administration. Details are expected to be worked out in the coming weeks following the legislative announcement.
