Cabinet Likely To Approve Railway Employees' Bonus Before Festive Season: Report
Railway bonus aside, central government employees eagerly await an announcement on the October dearness allowance hike, timed ahead of Diwali.
The Union Cabinet is likely to approve bonus for Railway employees before festive season, NDTV reported on Thursday quoting sources.
This comes nearly a month after a group of railway employees wrote to Union Minister Ashwini Vaishnaw in September, demanding that their productivity-linked bonus, typically received before Dussehra, be calculated based on the Seventh Pay Commission instead of the Sixth.
The minimum payment for the productivity-linked bonus is based on a minimum salary of Rs 7,000 per month, Indian Railways Employee Federation's National General Secretary Sarvjeet Singh said in the letter. However, under the Seventh Pay Commission, this should instead be based on Rs 18,000 per month.
Singh noted that railway employees have been paid according to the Seventh Pay Commission since January 2016. He described this situation as "sheer injustice and exploitation of railway employees."
"The minimum monthly basic salary in the railways is Rs 18,000. Thus, the 78-day bonus of Rs 17,951 is less than the monthly minimum salary. This creates suspicion in the market. As per the minimum monthly salary of Rs 18,000, the 78-day bonus amounts to Rs 46,159," Singh said.
Meanwhile, central government employees are also awaiting an announcement regarding the dearness allowance hike in October, just before Diwali. Currently, the DA stands at 50% of the basic pay, following a 4% decrease in March 2024. Last year, the government raised the DA in the first week of October, setting expectations for a similar timeline this year.
It is anticipated that the DA will increase by 3-4%, in line with the government's biannual review that typically occurs in January and July, according to various media reports.
The DA hike formula is based on the average of the All India Consumer Price Index over the previous 12 months, making it a crucial factor in salary calculations for government employees. While no official confirmation has been released regarding the specific percentage increase, the upcoming announcement is highly anticipated as employees hope for potential financial relief.
