Dearness Allowance (DA) for central personnel is now 46% after a 4% rise from the government. As resolved in the Cabinet meeting on Wednesday, this will directly benefit roughly 48.67 lakh federal employees and 67.95 lakh pensioners.
Starting in November, employees will get a higher compensation that includes arrears for the months of July through October. The government will have to pay 12,857 crores in additional costs every year as a result of this decision. Information on these Cabinet decisions was given by Cabinet Minister Anurag Thakur.
Will Railway Employees Get a 78-Day Bonus?
The decision to award a bonus equivalent to 78 days’ salary to 11,07,340 non-gazetted Railway Department personnel is excellent news for railroad workers as well. The cost of this will come to 1,969 crores. Since 2010–2011, this productivity-linked bonus has been awarded.
How Much Benefit Will There Be After the DA Increase?
Let’s now examine the benefit that will result from the DA increase. Multiplying the Dearness Allowance (DA) rate by the total of the Basic Salary and Grade Pay yields the DA. For example, if the Grade Pay is one thousand rupees and the Basic Salary is ten thousand rupees, the total amounts to eleven thousand rupees. The entire amount payable will be 16,060 rupees at a 46% DA rate. The DA amount will be 5,060 rupees. Let’s now compute this using a 42% DA rate. At 42%, 11,000 rupees equals 4,620 rupees, making a total of 15,620 rupees. This implies that employees will receive an additional 420 rupees per month following a 4% increase in DA.