The anticipation for dearness allowance (DA) hike is growing among central government employees. Typically, the government announces the DA hike around the time of Dussehra. The festive season is usually accompanied by a gift of DA hike. This time too, it is expected that the announcement regarding their DA hike should come by Dussehra. However, no official information has been received on this matter yet. The DA hike is slated to be effective from July 1, 2023, and it will be applicable for the second half of the year. However, in the meantime, there is good news for government employees from other ministries of the central government. Apart from the DA hike, they are also expected to receive a bonus.
Every year, Indian Railways employees receive a Productivity Linked Bonus (PLB) around the Diwali season. This bonus is equivalent to 78 days’ salary. It is paid to employees in the lowest grades (Group C and Group D). The bonus amount is calculated based on the minimum salary. However, this time, the Railway Federation has demanded an increase in this bonus. The final decision on this matter rests with the central government.
The Indian Railway Employee Federation (IREF) has requested the Railway Ministry to revise the bonus based on the 7th Pay Commission’s recommendations. IREF argues that although the 7th CPC recommendations were implemented in the railways from January 1, 2016, the bonus (PLB) is still being calculated based on the minimum salary determined in the 6th Pay Commission. Therefore, it should be revised as per the 7th Pay Commission.
In terms of the bonus amount in rupees, employees under Group D received a minimum wage of only ₹7,000 during the 6th Pay Commission. With the implementation of the 7th Pay Commission, this minimum wage was increased to ₹18,000. According to the demands of the Railway Employee Federation, employees in Group C and Group D should receive a bonus amounting to ₹46,159, considering the minimum wage as the base. A request has been made to the Railway Ministry in this regard.
In the current scenario, if the government were to pay employees the equivalent of 78 days’ salary as a bonus, it is estimated to put a burden of over ₹1,832 crore on the government’s treasury. This financial burden comes into play when the calculation of PLB is based on the minimum salary set by the 6th Pay Commission.
