Nagpur Municipal Corporation has agreed to release 15 months of dearness allowance arrears worth an estimated Rs16.95 crore to its regular employees, retired employees and pensioners, with the proposal scheduled to go before the standing committee on November 6. The payment is intended to be made before Diwali, but employees may receive the money only after the festival if the proposal is approved at the meeting.
The arrears follow demands from the Rashtriya Nagpur Corporation Employees Association (INTUC), which submitted a representation on November 2 seeking payment of the pending allowance. The civic administration’s decision comes against the backdrop of NMC employees not receiving a Diwali bonus and often relying on salary advances to meet festival-related expenses. These advances are later recovered from their salaries in instalments.
According to the accounts and finance department’s proposal, the arrears involve two components. The first is a 3% dearness allowance increase for eight months, from July 1, 2025, to February 28, 2026, estimated at Rs9.60 crore. The second is a 2% increase for seven months, from January 1, 2026, to July 31, 2026, involving an estimated Rs7.35 crore.
The proposal states that municipal commissioner Vipin Itankar and mayor Neeta Thakre decided to release the pending allowance for the specified period. The payment, however, is not final until the standing committee considers and approves the proposal. The committee meeting is scheduled two days before Diwali, leaving limited time for the civic body to process the arrears before the festival.
The decision places a substantial salary-related liability before the municipal administration at a time when civic finances must also support essential public services. The proposal covers both serving and retired personnel, making the financial commitment broader than a regular employee payment. The supplied report does not specify how the amount will be funded or the payment schedule after approval.
Separately, NMC’s general administration department has proposed extending the contracts of 53 fire personnel for six months. The extension, which will also be placed before the standing committee, is expected to cost the civic body Rs63.60 lakh in remuneration. Approval of both proposals will be taken up by the committee at its November 6 meeting.
