Railway Board announces 4% hike in dearness allowance for employees

The Railway Board has revised the dearness allowance for its employees from 42 per cent to 46 per cent of the basic pay effective from July 1, 2023.

The Board circulated a written communication dated October 23, 2023, to the General Managers and Chief Administrative Officers of All India Railways and Production Units stating, "...the President is pleased to decide that the Dearness Allowance payable to Railway Employees shall be enhanced from the existing rate of 42% to 46% of the Basic Pay with effect from 1st July, 2023."

It defined the 'Basic Pay' as the pay drawn as per 7th CPC recommendation accepted by the government, "but doesn't include any other time of pay like special pay etc."

The Board's announcement comes five days after the Union Cabinet approved an around Rs 15,000 cr bonus, that included a 4 per cent hike in DA for government employees.

 

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

Railway employee unions welcomed the announcement before Diwali.

"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 the Consumer Price Index and its purpose is to neutralise 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.