Gauhati High Court Halts Assam Government's Order To Eliminate DA from Tea Workers' Wages

GUWAHATI: In a major relief to tea garden employees in Assam, the Gauhati High Court has temporarily suspended the state government's order to exclude the dearness allowance (DA) element from their salary. The order came after a workers' union filed a petition arguing that the government action was illegal under the Assam Tea Plantations Provident Fund Act, 1955.

The Assam government had introduced an amendment on November 12, 2024, exempting the DA from the wage calculation for provident fund contributions. The amendment had caused mass protests in Guwahati and elsewhere, with trade unions opposing it as unhealthy for the finances of more than 12,000 tea plantation workers.

The petition, filed on February 21, questioned the validity of the newly added provision to Clause 22(C) of the Assam Tea Plantations Provident Fund and Pension Fund and Deposit Linked Insurance Fund Scheme, 1968. During the court hearing, Additional Senior Government Advocate R K Borah requested additional time to present the government's stance, which the court granted while staying the removal of the DA until further notice.

The Assam Tea Workers' Association (ATWA) hailed the court decision as a reaction to perceived government injustices. The controversy underscores the long-standing issues of tea plantation workers, who have long suffered from low wages and poor living conditions. The Assam government has justified the amendment as part of larger economic reforms to alleviate financial burdens on tea estate owners.

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