Mumbai, October 27: The Centre last week approved 3 percent hike in the rate of dearness allowance (DA) for central government employees as per the 7th Pay Commission recommendations. Ahead of Diwali, a similar good news has arrived for employees of the Maharashtra State Road Transport Corporation (MSRTC). According to a report by India.com, the MSRTC has decided to increase the rate of DA from 12 percent to 17 percent. MSRTC Bus Fare Hike: Maharashtra ST Bus Fares To Go Up.

The increased rate of DA will benefit around 95,000 employees. The MSRTC further announced that salary of employees for the month of October will be released before the Diwali festival on November 1. Usually, salary is paid on the 7th day of each month. In addition to this, the MSRTC also announced "Diwali Bhet" (bonus) of Rs 2,500 and Rs 5,000 to its employees and officers, respectively. 7th Pay Commission Latest News: DA Rate Hiked Again, Here's How Much Your Salary Will Increase Based on Basic Pay.

Earlier this week, the MSRTC decided to hike fares for all types of bus services due to rise in diesel prices. With increased fare rates, the MSRTC, which has been severely hit due to curtailed operations amid the coronavirus pandemic and lockdown, is expected to earn an additional Rs 50 crore.

Last week, the Centre increased the rate of DA and DR (dearness relief) from 28 percent to 31 percent for central government employees and pensioners, under the 7th Pay Commission. It means employees and pensioners will now get 31 percent of their basic pay or income as DA and DR respectively. The increased rate of DA and DR will cost the exchequer Rs 9,488.70 crore annually.

"This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners," the Centre had said.

(The above story first appeared on LatestLY on Oct 27, 2021 03:51 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).