Railway PLB gets Modi govt nod after GST bonanza: Spotlight on DA hike, 8th Pay Commission update

8th pay commission

Days after GST 2.0 reforms, the Centre on Wednesday announced a performance-linked bonus for the employees of the Indian Railways. The Productivity Linked Bonus (PLB) of 78 days for Rs 1865.68 crore will benefit the 10,91,146 railway employees.

The decision, announced by Union Minister Ashwini Vaishnaw following the Cabinet meeting, has sparked buzz around the DA hike and the much-awaited 8th Pay Commission.

Also Read: Cabinet okays Rs 1,866-cr productivity-linked bonus as early Diwali gift for railway employees

Dearness Allowance (DA) and Dearness Relief (DR) are usually announced by the government twice a year. While the first revision was announced earlier this year, the second revision is likely to be announced next month.

There are reports that the Centre may make the DA hikes official in the first week of October, which coincides with the Dussehra festival.

Usually, the DA/DR hike also includes arrears. With September ending in a week, there is strong buzz that the hike will be announced soon so that staff can receive the September salary along with the hike and arrears.

Another big fiscal decision that many are awaiting is regarding the 8th Pay Commission. Announced back in January by Prime Minister Narendra Modi, the CPC is awaiting formal constitution, as the terms of reference have not been decided so far. With January 1, 2026 as the intended timeline for implementation, the Centre may announce some measure to fastrack the process.

FAQs

When was the last DA hike announced?

The Centre had announced the first installment of the Dearness Allowance (DA) and Dearness Relief (DR) hike in March. At that time, the DA and DR were increased to 55 percent from 53 percent.

Will government employees get arrears too?

Yes, the DA and DR hike also includes arrears.

Is the DA hike taxable?

Yes, the hike will be taxed as per the income tax slab.

What is the criteria for calculating the increase in Dearness Allowance?

The Centre calculates the DA and DR on the basis of AICPI (All India Consumer Price Index).