7th Pay Commission: DA Hike, Bonus for Diwali? Also Know the Status of 8th Pay Commission

For those working with the Central Government, the festive season has already begun with so many surprises. In addition to Dearness Allowances and salary hike, the Centre has announced Diwali Bonuses for selected employees.

As of July 1, 2022, the Central Government increased the Dearness Relief (DR) for Central Government Employees by 4%. With this, the DR increased by 4%, bringing it to 38%. In addition, the Centre last week approved paying railroad personnel a Productivity Linked Bonus (PLB) for the fiscal year 2021–2022, which is equal to 78 days.

When will the 8^th Pay Commission start?

In the middle of these payment announcements, rumors that the Narendra Modi administration will shortly establish the 8th Pay Commission for employees are rampant. The Pay Commission was most recently established on February 28, 2014, for the payment boost connected to Central government employees, and all government employees must be aware of this. The 8th Pay Commission is anticipated to be established in 2023 based on trends seen through the 5th, 6th, and 7th Pay Commissions. However, the Central government has not yet verified anything.

What’s the status of the 4% hike in DA?

The Union Cabinet increased the dearness allowance (DA) and dearness relief (DR) by 4% beginning July 1, 2022, ahead of the Diwali celebration. Over 41.85 lakh central government employees and 69.76 lakh pensioners have benefited from the government's decision.

Notably, the most recent DA and dearness relief (DR) payment represents a 4% increase over the previous rate of 34% of basic pay/pension. Based on the percentage rise in the 12-month average of the All-India Consumer Price Index for the period ending in June 2022, the DA and DR have been raised.

The impact of increased dearness allowance to employees on the exchequer is estimated at Rs 6,591.36 billion per year and Rs 4,394.24 billion in 2022–23, according to the central government (8 months from July 2022 to February 2023).

Is there a Diwali bonus for railway employees?

On October 12, the Central government approved the payment of productivity-linked bonuses to railroad employees for the fiscal year 2021–2022, which is equal to 78 days of payment. For those who work for the government, this is a Diwali gift. 

Employees of non-gazetted railways who are not RPF/RPSF personnel will get the Productivity-Linked Bonus (PLB), which is equal to 78 days of pay, for the fiscal year 2021–2022. Approximately 11.27 lakh non-gazetted railroad personnel will profit from this action by the Railway Ministry. It has been calculated that paying railway staff for 78 days of PLB will cost Rs 1,832.09 crore.