7th Pay Commission: Indian railways implements 2% DA, DR hike for employees and pensioners

7th Pay Commission: Indian railways implements 2% DA, DR hike for employees and pensioners


The Ministry of Railways has issued orders implementing the latest Dearness Allowance (DA) and Dearness Relief (DR) hike for railway employees and pensioners following the Centre’s approval of an additional instalment under the 7th Pay Commission.

The Railway Board revised DA for serving railway employees and DR for railway pensioners and family pensioners from 58% to 60% of basic pay/pension with effect from January 1, 2026.

The orders were issued through separate Railway Board notifications — RBE No. 34/2026 for employees and RBE No. 36/2026 for pensioners.

The move follows the Union Cabinet’s decision last month to approve a 2-percentage-point increase in DA and DR for central government employees and pensioners to help offset the impact of inflation.

According to the Railway Board order on pensioners, the revised DR rate will apply to railway pensioners, family pensioners, and other eligible beneficiaries covered under the 7th Central Pay Commission framework.

The revised payments are effective retrospectively from January 1, 2026, implying eligible employees and pensioners would receive arrears for the intervening period.

DA and DR revisions are typically undertaken twice a year — effective January 1 and July 1 — based on changes in the All India Consumer Price Index and recommendations under the accepted pay commission formula.

The latest revision impacts lakhs of railway employees and pensioners across the country, as Indian Railways remains one of the largest government employers in India.



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