Railway Board hikes DA by 4% for its employees

The DA hike announcement by the Railway Board came five days after the Union Cabinet approved a similar hike for government employees. The railway employees union leaders say that the DA, which is being increased based on the Consumer Price Index (CPI), is aimed at protecting the employees from inflation and price rise.

New Delhi : The Railway Board has announced a raise in the dearness allowance for its employees from 42 per cent to 46 per cent with effect from July 1, 2023. The DA will be paid as a percentage of the basic pay. The DA hike announcement came five days after the Union Cabinet approved a 4 per cent hike in DA for government employees.

A written communication dated October 23, 2023, was issued to this effect to the Railway Board's General Managers (GMs) and Chief Administrative Officers (CAOs) of All India Railways and Production Units. Following this latest enhancement, the employees will get the increased DA with arrears from July in their coming salary.

The circular issued by the Railway Board said that 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.' The Railway unions welcomed the DA hike ahead of the festival, Diwali. The circular described basic pay as the pay drawn as per 7th CPC (Central Pay Commission) recommendation accepted by the Government.

The railway employees union leaders say that the DA, which is being increased based on the Consumer Price Index (CPI), is aimed at protecting the employees from inflation and price rise.