7th Pay Commission: Good news for Railway employees as Board announces 4% hike in Dearness Allowance (DA). Details here
The Railway Board has decided to raise the dearness allowance for workers from 42% to 46% of their base pay.
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The Railway Board has stated that the dearness allowance for its employees has been increased from 42 percent to 46 percent of the base pay, effective July 1, 2023.
According to a circular from the Board dated October 23, 2023, to the General Managers and Chief Administrative Officers of All India Railways and Production Units, "...the President is pleased to decide that the Dearness Allowance payable to Railway Employees shall be increased from the existing rate of 42% to 46% of the Basic Pay with effect from 1st July, 2023."
It defined 'Basic Pay' as the pay drawn in accordance with the 7th CPC recommendation accepted by the government, "but does not include any other time of pay such as special pay, etc."
Employees will get the increased DA with arrears beginning in July in their next salary. "The DA was due to the employees from July, so it was the employees' right to get it," said Shiva Gopal Mishra, General Secretary of All India Railwaymen's Federation, welcoming the board's decision. "However, I applaud the decision to announce its payment before Diwali," according to PTI.
According to M Raghavaiah, General Secretary of the National Federation of Indian Railwaymen, DA is paid on the basis of the Consumer Price Index and serves to neutralize inflation. "It is okay that the Railway Board has timely announced it, however, we continue to press our demand for the payment of DA from January 2020 to June 2021 which the government froze due to Covid-19," he said in a statement released by the agency.
Meanwhile, the Railway Board's announcement came just five days after the Union Cabinet approved an approximately 15,000 cr bonus, which included a 4% increase in DA for government employees, in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.
Meanwhile, the government previously approved Diwali bonuses for Group C and non-gazetted Group B level officials, including paramilitary forces. The finance ministry has established a ceiling of 7,000 for the calculation of non-productivity linked bonuses (ad hoc bonuses) for central government employees in 2022-2023. According to the memorandum, the Department of Expenditure under the Finance Ministry has granted a non-productivity linked bonus (ad-hoc bonus) equivalent to 30 days emoluments for the fiscal year 2022-23 to central government employees in Group 'C' and all non-gazetted employees in Group B' who are not covered by any productivity-linked bonus scheme.
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