The Railway Board in India made a significant announcement regarding the dearness allowance (DA) for its employees on October 23, 2023.
The DA, a component of an employee's salary designed to offset inflation, has been revised from 42% to 46% of the basic pay. This increase is effective from July 1, 2023, and railway employees can expect to see this adjustment in their upcoming salaries.
The Railway Board's communication specified that the "Basic Pay" refers to the pay determined according to the 7th Central Pay Commission (CPC) recommendations accepted by the government, excluding additional payments like special allowances.
This announcement came shortly after the Union Cabinet approved a bonus of approximately Rs 15,000 crore for government employees, which included a 4% increase in DA. The adjustment in DA for railway employees is part of this broader initiative.
The increase in DA means that employees will receive arrears dating back to July, boosting their income for the months they have already worked. This news was particularly well-received by railway employee unions, who considered the adjustment long overdue.
Shiva Gopal Mishra, the General Secretary of the All India Railwaymen's Federation, expressed his satisfaction with the decision, emphasizing that the DA had been pending since July, and employees had a rightful expectation to receive it. He also noted the timely announcement before the Diwali festival, which is of great significance in India.
M Raghavaiah, the General Secretary of the National Federation of Indian Railwaymen, acknowledged the timely announcement by the Railway Board but pointed out that there is an ongoing demand from employee unions for the payment of DA from January 2020 to June 2021. This period's DA had been frozen by the government due to the economic impact of the COVID-19 pandemic. Raghavaiah highlighted that the purpose of DA is to mitigate the effects of inflation, making it a vital component of employees' compensation.
Thus, the Railway Board's decision to increase the dearness allowance for railway employees from 42% to 46% of the basic pay, effective from July 1, 2023, was welcomed by employee unions. It follows a broader initiative that also includes a 4% DA increase for government employees and aims to address the impact of inflation on their earnings. While the timely announcement was celebrated, there is still an ongoing push to have the DA payments reinstated for the period affected by the COVID-19 freeze.
