Government's Festive Gift to Employees: Dearness Allowance Hike and Bonus Approval New Delhi

In a move that has brought cheer to Central Government employees and pensioners just ahead of the festive season, the Union Cabinet has approved significant financial incentives.

Effective from July 1, 2023, the government has given the green light to an additional instalment of Dearness Allowance (DA) and Dearness Relief (DR). This increase, which amounts to 4%, will be based on the existing rate of 42% of the Basic Pay/Pension, aiming to offset the impact of rising prices. The decision adheres to the recommendations of the 7th Central Pay Commission.

This development will have a combined annual impact of Rs. 12,857 crore, benefiting approximately 48.67 lakh Central Government employees and 67.95 lakh pensioners across the nation. The decision comes as a heartwarming gift for government employees as they prepare to celebrate various festivals.

In addition to the DA and DR hike, the Union Cabinet has also approved a Productivity Linked Bonus (PLB) equivalent to 78 days' wages for the financial year 2022-23. This bonus will be disbursed to eligible non-gazetted Railway employees, including Track maintainers, Loco Pilots, Train Managers (Guards), Station Masters, Supervisors, Technicians, Technician Helpers, Pointsman, Ministerial Staff, and other Group 'C' staff (excluding RPF/RPSF personnel).

The decision to award PLB was influenced by the exceptional performance of Railway staff in the past year, where the Railways achieved significant milestones, including the record loading of 1509 million tonnes of cargo and serving nearly 6.5 billion passengers. Factors contributing to this success included government investments in railway infrastructure, improved operational efficiency, and advanced technology.

The PLB, totaling Rs. 1968.87 crore, will be distributed among 11,07,346 railway employees, acting as a substantial incentive for further improvement in performance.