As of July 1, 2022, the Central Government increased the Dearness Relief (DR) for Central Government Employees by 4%. Also, the DR was also increased by 4%, bringing it to 38%. In addition, the Centre last week approved paying railway employees a Productivity Linked Bonus (PLB) for the fiscal year 2021–2022, which is equal to 78 days.
8th Pay Commission Soon
Amid these payment announcements, several media reports said that the Narendra Modi government will shortly set up the 8th Pay Commission for employees. The Pay Commission was most recently established on February 28, 2014, for the payment hike connected to Central government employees, and all government employees must be aware of this. The 8th Pay Commission is expected to be constituted in 2023 based on trends seen through the 5th, 6th, and 7th Pay Commissions. However, the Central government has not yet verified anything.
Dearness Allowance (DA) Hiked by 4%
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 represent a 4% increase over the previous rate of 34% of basic pay/pension.
The DA and DR have been raised 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 impact of increased dearness allowance to employees on the exchequer is estimated at Rs 6,591.36 crore per annum and Rs 4,394.24 crore in 2022–23 (8 months from July 2022 to February 2023), according to the central government.
Diwali Bonus for Railway Employees
On October 12, the Central government approved the payment of productivity-linked bonuses to railway 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 treat. 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 railway employees will profit from this move by the Railway Ministry. It has been calculated that paying railway employees for 78 days of PLB will cost Rs 1,832.09 crore.
