Good news! Centre Announces 4% DA Hike For Railways Employees

The Indian Railways has announced to increase the Dearness Allowance (DA) for its employees by 4%. This will come into effect on July 1, 2023, and it raises the DA from the existing 42% to 46% of the basic pay.

The decision was conveyed through a written communication dated October 23, 2023, addressed to the General Managers and Chief Administrative Officers of All India Railways and Production Units by the Railway Board. The communication stated that the President has approved the enhancement of the Dearness Allowance payable to railway employees, effective July 1, 2023.

The term ‘basic pay’ clarified as the pay drawn according to the recommendations of the 7th Pay Commission (CPC), as accepted by the government. It does not include other types of pay, such as special days.

Notably, this announcement by the Railway Board comes shortly after the Union cabinet approved a bonus of approximately Rs 15,000 crore, which will include a 4% increase in DA for government employees.

This news has been well received by the railway employee unions, especially as it comes just before the Diwali festival. They are pleased that the enhanced DA, along with arrears from July, will reflect in their upcoming salaries.

Raghavaiah, General Secretary of the National Federation of Indian Railwaymen, explained that DA is based on the Consumer Price Index and is intended to counteract the effects of inflation. He noted that while the Railway Board’s announcement is timely, they are continuing to push for the payment of DA from January 2020 to June 2021, a period during which the government had frozen it due to the COVID-19 pandemic.

Also Read: 7th Pay Commission: 4% DA Hike Approved For Central Government Employees