DD India

In a significant move, the Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to raise Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners by 4%. In a separate move, they government has approved a substantial Productivity Linked Bonus (PLB) for Railway employees to recognize their exceptional performance.”

Dearness Allowance and Dearness Relief 

The Union Cabinet has granted approval for an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from July 1, 2023. This installment represents a 4% increase over the existing rate of 42% of the Basic Pay/Pension and is intended to offset the impact of rising prices. The adjustment aligns with the formula accepted, based on the recommendations of the 7th Central Pay Commission.

This decision will have a combined financial impact of Rs. 12,857 crore per annum. It will provide a direct benefit to approximately 48.67 lakh Central Government employees and 67.95 lakh pensioners.

PLB for Railway employees

In recognition of the exceptional performance of Railway staff, the Union Cabinet, presided over by Prime Minister Narendra Modi, has approved a Productivity Linked Bonus (PLB) equivalent to 78 days’ wages for the financial year 2022-2023. This bonus will be extended to all eligible non-gazetted Railway employees, including categories such as Track Maintainers, Loco Pilots, Train Managers (Guards), Station Masters, Supervisors, Technicians, Technician Helpers, Pointsmen, Ministerial Staff, and other Group ‘C’ staff (excluding RPF/RPSF personnel).

The Union Government has allocated Rs. 1968.87 crore for this purpose, benefiting a total of 11,07,346 railway employees. The exceptional performance of the Railways in the year 2022-2023 is highlighted by the record-breaking transportation of 1509 million tonnes of cargo and the conveyance of nearly 6.5 billion passengers.

This remarkable performance is attributed to several factors, including substantial government investment in Railway infrastructure, operational efficiency, and advancements in technology. The PLB payment serves as an incentive to further motivate Railway employees to strive for improved performance in the future.