CHENNAI: The Cooperation Department has ruled out a separate salary hike for fair-price shop employees, stating that dearness allowance (DA) is revised periodically to offset rising prices and inflation, and that there is no need for an additional wage increase.

In a communication, Additional Registrar (Consumer Affairs) K Tharpagaraj conveyed the department's position to the Tamil Nadu Government Ration Shop Employees' Association, which sought a 25 per cent salary hike under Rule 110, besides a special salary increase once every three years instead of every five years.

The association argued that employees with more than 20 years of service earned less than Rs 20,000 a month, making it difficult for them to meet their families' living expenses.

The association also cited a Government Order issued by the Food and Consumer Protection Department on March 5, 2026, granting a special salary increase to employees. However, Tharpagaraj said DA was being revised from time to time in view of rising prices and inflation, making a separate wage hike unnecessary.

He also pointed out that the existing system provided for a special salary increase once every five years, with no provision for revisions every three years.