Adding to the festive cheer, the Union Cabinet on Wednesday approved a raise in dearness allowances (DA) for central government employees and dearness relief (DR) for pensioners by 4% with effect from July 1 this year to compensate for the price rise.

"I am pleased to share that a decision has been taken in the interest of central government employees and pensioners around this festive season. With effect from July 1, 2023, a decision has been taken to raise the dearness allowance (DA) to central government employees and dearness relief (DR) to pensioners by 4%. This will benefit crores of central government employees and pensioners," Information and Broadcasting Minister Anurag Singh Thakur said while briefing the media on Cabinet decisions.

The fresh hike takes DA and DR component of salary and pension to 46% of the basic pay/pension.

The additional salary and pension would cost the public exchequer Rs 12,857 crore per annum.

The hike in payout will benefit about 48.67 lakh central government employees and 67.95 lakh pensioners.

"This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission," a government statement said.

The Cabinet chaired by Prime Minister Narendra Modi also approved Productivity Linked Bonus (PLB) equivalent to 78 days’ wages for the financial year 2022-23 to all eligible non-gazetted Railway employees.

The non-gazetted railway employees include Track maintainer, Loco Pilots, Train Managers (Guards), Station Masters, Supervisors, Technicians, Technician Helpers, Pointsman, Ministerial Staff and other Group ‘C’ staff (excluding RPF/RPSF personnel).

"In recognition of this excellent performance by the Railway staff, Union Government has approved payment of PLB of Rs 1968.87 crore to 11,07,346 railway employees. The performance of Railways in the year 2022-23 was very good. Railways loaded a record cargo of 1509 Million Tonnes and carried nearly 6.5 Billion Passengers," an official statement said.

(With UNI inputs)