 "Anurag Thakur")
The Union Cabinet on Wednesday approved a hike in the dearness allowance (DA) to central government employees and dearness relief (DR) to pensioners by four precentage points to 46 per cent of basic salary. The government said the decision was taken to compensate against price rise. The Cabinet also approved a productivity-linked bonus (PLB) equivalent to 78 days’ wages for 2022-23 to all the eligible non-gazetted staffers of the Indian Railways.
The release of the additional instalment of DA and DR will be applicable from July 1, 2023, Union Information and Broadcasting Minister Anurag Thakur said.
“This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” the statement said.
A press statement by the ministry of finance said that the combined impact on the exchequer on account of both DA and DR would be Rs 12,857 crore per annum. The move will benefit about 4.86 million central government employees and 6.79 million pensioners.
Presently, over ten million central government employees and pensioners are getting 42 per cent of the basic pay as their DA.
The DA for employees and pensioners is worked out on the basis of the latest consumer price index for Industrial Workers (CPI-IW), released by the Labour Bureau every month.
The last revision in DA was done on March 24, 2023, and was effective from January 1, 2023. The allowance is revised periodically twice a year.
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‘Diwali bonus’ for railway staff
The national transporter loaded a record cargo of 1,509 million tonnes and carried nearly 6.5 billion passengers in FY23. “In recognition of this performance by the Railway staff, the Union government has approved payment of PLB of Rs 1,968.87 crore to 1.10 million railway employees,” the Union cabinet said in a press release.
Those eligible for the PLB, or ‘Diwali bonus’, include track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, technician helpers, pointsmen, ministerial and other Group ‘C’ staff.
The Railway Protection Force and Railway Protection Special Force personnel are not covered under the scheme.
Earlier in the year, railway labour unions had reportedly sought a revision in the minimum salary as the PLBs were disbursed based on the minimum salary fixed by the 6th Pay Commission, even as the national transporter had implemented the 7th Pay Commission’s recommendations years ago.
