Diwali Bonus: As Diwali approaches, the central government, led by Prime Minister Narendra Modi, has brought good tidings for its employees and pensioners. The Cabinet has approved a 4% increase in the Dearness Allowance (DA) for them. Following this increment, the DA has surged from 42% to 46%. This decision was taken in a meeting presided over by the Prime Minister.
Effective from July 1, this hike in DA will benefit over one crore central government employees and pensioners. Traditionally, the central government revises the DA twice a year for its employees. Earlier in January, there was a similar 4% increase. Furthermore, railway employees have another reason to celebrate. A decision to grant them a performance-linked bonus equivalent to 78 days’ wages has been made. This will entail an expenditure of Rs. 1,969 crores, benefiting over 11 lakh railway workers. Additionally, the Cabinet has resolved to increase the Minimum Support Price (MSP) for six Rabi crops.
This DA increment is in alignment with the recommendations of the Seventh Pay Commission. The central government’s move will positively impact 48.67 lakh employees and 67.95 lakh pensioners. Annually, this will impose a financial burden of Rs. 12,857 crores on the government’s treasury. Union Minister Anurag Thakur, in a press briefing, emphasized the government’s commitment to welfare. He detailed the major decisions taken in the Cabinet and CCEA meetings, including the rise in DA and the bonuses for railway staff. The MSP for Rabi crops like oilseeds, lentils, wheat, barley, gram, and sunflower has also been increased, with hikes ranging from Rs. 105 to Rs. 425 per quintal.
Impact on Salaries and Pensions
With the DA now at 46%, if a central government employee receives a basic pay of Rs. 18,000 per month, their current DA of Rs. 7,560 will increase to Rs. 8,280. Similarly, an employee with a basic salary of Rs. 56,900, who currently receives a monthly DA of Rs. 23,898, will now get Rs. 26,174. Pensioners will also see a hike. For instance, a pensioner with a basic pension of Rs. 10,000 will have their Dearness Relief (DR) rise from Rs. 4,200 to Rs. 4,600.
In summary, these financial decisions by the central government showcase its commitment to improving the lives of its employees, pensioners, and farmers, bringing cheer just in time for the festive season.