Railway Employees Get Diwali Gift; DA Hiked by 4%

The Railway Board has announced a 4 per cent hike in dearness allowance (DA) for its employees, effective from July 1, 2023. The DA will increase from the existing rate of 42 per cent to 46 per cent of the basic pay. The board has defined the ‘basic pay’ as the pay drawn as per the 7th CPC recommendation accepted by the government, “but doesn’t include any other type of pay like special pay etc.”

The board has circulated a written communication dated October 23, 2023, to the General Managers and Chief Administrative Officers of All India Railways and Production Units regarding this decision.

This follows the Union Cabinet’s approval last week to distribute around Rs 15,000 cr bonus to the government employees, including a 4 per cent hike in DA.

The employees will get the enhanced DA with arrears from July in their next salary.

Railway employee unions welcomed the move as a Diwali gift.

“The DA was due to the employees from July so it was the employees’ right to get it. However, I welcome the decision to announce its payment before Diwali,” Shiva Gopal Mishra, General Secretary of All India Railwaymen’s Federation, said.

M Raghavaiah, General Secretary of the National Federation of Indian Railwaymen, said DA is paid on the basis of Consumer Price Index and its purpose is 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