Emoluments/Average Emoluments for Pensionary Benefits

Emoluments/Average Emoluments for Pensionary Benefits – Purpose of calculating various retirement and death benefits – Railway Board Master Circular

MC No. 55 (2019)
RBE No. 169/2019

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No. 2019/F(E)III/7/2

New Delhi, Dated 14.10.2019

The GMs/Principal Financial Advisers,
All Zonal Railways/Production Units etc.,
(As per mailing list)

Sub: Emoluments/Average Emoluments for Pensionary Benefits-reg.

*******

Master Circular No. 55 on the concept of “Emoluments/Average Emoluments for Pensionary Benefits” was last brought out and circulated vide Board’s letter No. F(E)III/Master Circular-3 (Emoluments) dated 18.04.1994. Railway Board have now decided to issue a consolidated Revised Master Circular on the subject for the information and guidance of all concerned.

2. While referring to this circular, the original letters referred to herein should be read for a proper appreciation. This circular is only a consolidation of the instructions issued so far and should not be treated as a substitution to the originals. In case of doubt, the original circular should be relied upon as authority.

3. The instructions contained in the original circulars referred to above, have only prospective effect from the date of issue unless specifically indicated otherwise in the concerned circular. For dealing with old cases, the instructions in force at the relevant time should be referred to; and

4. If any circular on the subject, which has not been superseded, has not been taken into consideration while preparing this consolidated letter, the said circular, which has been missed through oversight, should be treated as valid and operative. Such, a missing circular, if any, may be brought to the notice of the Railway Board.

EMOLUMENTS/AVERAGE EMOLUMENTS

1. Emoluments: – The expression –

(a) “emoluments”. for the purpose of calculating various retirement and death benefits, means the basic pay as defined in clause (i) of rule 1303 of the Code which a railway servant was receiving immediately before his retirement or on the date of his death:

Provided that the stagnation increment shall be treated as emolument for calculation of retirement benefits;

(b) ‘pay’ in these rules means the pay in the revised scales under the Railway Services (revised pay) Rules, 2016;

Provided that ‘pay element’ of Running Staff shall also include fifty-five per centum of the basic pay for reckoning emoluments.

Note 1: If a railway servant immediately before his retirement or death while in service had been absent from duty on leave for which leave salary is payable or having been suspended had been reinstated without forfeiture of service, the emoluments which he would have drawn had he not been absent from duty or suspended shall be the emoluments for the purposes of this rule:

Provided that any increase in pay (other than the increment referred to in Note 4) which is not actually drawn shall not form part of his emoluments.

Note 2.: Where a railway servant immediately before his retirement or death while in service had proceeded on leave for which leave salary is payable after having held a higher appointment. Whether in an officiating or temporary capacity, the benefit of emoluments drawn in such higher appointment shall be given only if it is certified that the railway servant would have continued to hold the higher appointment but for his proceeding on leave.

Note 3.: If a railway servant immediately before his retirement or death while in service had been absent from duty on extraordinary leave, or had been under suspension, the period whereof does not count as service, the emoluments which he drew immediately before

proceeding on such leave or being placed under suspension shall be the emoluments for the purposes of this rule.

Note 4: If a railway servant immediately before his retirement or death while in service, was on earned leave and earned an increment which was not with-held, such increment though not actually drawn, shall form part of his emoluments:

Provided that the increment was earned during the currency of the earned leave not exceeding one hundred and twenty days, or during the first one hundred and twenty days of earned leave where such leave was for more than one hundred and twenty days.

Note 5: Pay drawn by a railway servant while on deputation to the Armed Forces of India shall be treated as emoluments.

Note 6: Pay drawn by a railway servant while on foreign service shall not be treated as emoluments, but the pay which he would have drawn under the railway, had he not been on foreign service shall alone be treated as emoluments.

Note 7: Where a pensioner who is re-employed in railway service elects in terms of clause (a) of sub-rule (1) of rule 33 or clause (a) of sub rule (1) of rule 34 to retain his pension for earlier service and whose pay on re-employment has been reduced by an amount not exceeding his pension, the element of pension by which his pay is reduced shall be treated as emoluments.

Note 8: Where a railway servant has been transferred to an autonomous body consequent on the conversion of Department of the Railways into such a body and the railway servant so transferred opts to retain the pensionary benefits under the rules of the railway, the emoluments drawn under the autonomous body shall be treated as emoluments for the purpose of this rule.

(Authority: Rule 49 of the Railway Services (Pension) Rules, 1993)

2. Average emoluments:-

Average emoluments shall be determined with reference to the emoluments drawn by a railway servant during the last ten months of his service.

Note 1: If during the last ten months of his service a railway servant had been absent from the duty on leave of which leave salary is payable or having been suspended had been reinstated without forfeiture of service, the emoluments which he would have drawn, had he not been absent from duty or suspended, shall be taken into account for determining the average emoluments:

Provided that any increase in pay (other than the increment referred to in Note 3) which is not actually drawn shall not form part of his emoluments.

Note 2: If during the last ten months of his service, a railway servant had been absent from duty on extraordinary leave, or had been under suspension the period whereof does not count as service, the aforesaid period of leave or suspension shall be disregarded in the calculation of the average emoluments and equal period before the ten months shall be included.

Note 3: In the case of a railway servant who was on earned leave during the last ten months of his service and earned an increment, which was not withheld, such increment, though not actually drawn shall be included in the average emoluments;

(Authority: Rule 50 of the Railway Services (Pension) Rules, 1993)

(G. Priya Sudarsani)
Director, Finance (Estt.),
Railway Board

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