7th Pay Commission Transport Allowance – Higher Rate in level 1 and 2 denied

Transport Allowance at higher rate for Employees in Pay Level 1 and Pay Level 2 as recommended by 7th Pay Commission not paid – Demand of NFIR

No.IV/NFIR/CPC (Imp)/Allowance/2016/Part I

Dated: 08-06-2018

The Secretary (E)
Railway Board
New Delhi

Dear Sir,

Sub: Government’s decision on recommendation of the 7th Central Pay commission – Transport Allowance to the Railway Employees – Deprive of higher rate to those working in pay level 1 & 2 – reg.

Ref: (i) Railway Board’s Letter No.PC-V/2017/A/TA/1 dated 17-08-2017 (RBE No.96/2017)

(ii) NFIR’s letter No.IV/NFIR/7 CPC/Allowance/2016/Part I dated 28-08-2017

(iii) Railway Board’s letter No.PC-V/2015/PNM/NFIR/4 dated 17-/20-11-2017

(iv) NFIR’s letter No.IV/NFIR/7 CPC (Imp)/Allowance/2016/Part I dated 05-04-2018.

Kind attention of Railway Board is invited to the references cited above.

NFIR reiterates that pursuant to issuance of instructions dated 17-08-2017, situation has arisan wherein the Railway Employees is Pay Level 3, drawing Pay Rs.21,700/- and above and also upto Pay Level 8 hitherto entitled for Transport Allowance @ Rs.3600 + DA thereon (in AI/A class cities and in other cities @ Rs.1800 + DA thereon) have been deprived of the said rate (due to the new norm for entitlement).

In this context, Federation furnishes below the rates granted pursuant to acceptance of the recommendations of the 5th CPC and 6th CPC:

(a) Recommendations of 5th CPC – Transport Allowance
RBE No.179/1997 (Rates w.e.f. 01-08-1997)

From the above, it could be seen that those in pay scale below Rs.6500-10500 i.e. upto Rs.6000-9800 (S1 to S10A) were allowed Transport Allowance at the uniform rate of Rs.100/- p.m. in A1/A class cities irrespective of their pay.

(b) After introduction of 6th CPC Pay Band/Grade Pay, the Railway Board vide circular (RBE No.111/2008 – effective from 01-09-2008 and RBE No.95/2015) had prescribed following rates for payment of Transport Allowance to the employees.

A comparison of two tables mentioned above, reveals that Railway employees were allowed higher rate of Transport Allowance on their drawing pay Rs.7440/- irrespective of Grade Pay/Pay Band. However, the modified Board’s instructions issued vide letter dated 03-08-2017 and 17-08-2017, have deprived the Transport Allowance @ Rs.3600+DA thereon to those in pay Level 1 and 2 (7th CPC) due to imposition of restriction i.e reaching the pay Rs.24700/-.

Federation, therefore requests the Railway Ministry of Kindly refer the matter to Ministry of finance, for mitigating the problem.

Yours faithfully,
S/d,
(Dr.M.Raghavaiah)
(General Secretary)

Source: NFIR