Merger of Dearness Allowance equal to 50% of basic pay w.e.f 01-04-2004 for running staff

Railway Board Circular – Merger of Dearness Allowance equal to 50% of basic pay w.e.f 01-04-2004 – Reckoning as pay for running Staff

Ministry of Railways letter to NFIR regarding Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01-04-2004

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

RAILWAY BOARD

No.EP&A-II/2006/RS-28

New Delhi, dated 20.11.2016.

The General Secretary

National Federation of Indian Railwaymen

3, Chelmsford Road,

New Delhi – 110 055.

Sub: Merger of Dearness Allowance equal to 50% of basic pay w.e.f 01-04-2004 – Reckoning as pay for running Staff.

Ref: (i) DC/JCM Item No.15/2009.

(ii) GS/NFIR’s letter No.IV/RSAC/Conf/Vol.VI dated 28-03-2016.

Please refer to your letter dated 28.03.2016 under reference no. (ii) on the subject noted above. In this connection, it is mentioned that Board’s letter dated 21.10.2014 addressed to both the Federations highlighted that the basis for the exclusions was the Ministry of Finance’s OM dated 01.03.2004 on the merger of 50% DA with basic Pay that was adopted by the Ministry of Railways. Vide letter dt. 28.03.2016, however, NFIR has not agreed with the reply and has reiterated that the exclusions violate the IREM provision of Running Allowance and that the OM dt. 01.03.2004 of MoF is not relevant in this connection.

For a better understanding of the logic on which the three exclusions have been made. the table given below may kindly by seen:-

Clause No.	Benefit of 30% pay element (mentioned in the clause) applicable to Running Staff	Relevant wording in MoF O.M. dated 01.03.2004 pertaining to the benefit	Remarks
A	Entitlement for Pass/PTO	LTC specifically excluded from revision of entitlement on merger of 50% DA with Basic pay	As Railways, do not have LTC Pass. PTO revision excluded accordingly vide RBE No.77/2008
B	Fixation in pay in stationary posts	Fixation of pay not included as an admissible benefit for revision of entitlement on merger of 50% DA with Basic Pay	Counting of the benefit (of merger of DA with Basic) for Fixation of pay is an issue pertaining to all Government employees and not merely Running Staff of Railways. When this benefit has not been extended to any Government employee, it cannot be extended to Running Staff isolation. RBE NO.77/2008 has been issued accordingly. As erstwhile Basic Pay element (without merger of 50% DA) however continued to be admissible for Fixation of pay of Running Staff in stationary posts, there is no violation of relevant IREM provision.
C	Entitlement of Quarters	Government accommodation specifically excluded from revision of entitlement on merger of 50% DA with Basic Pay.	As Railway Quarters are Government accommodation. Revision of entitlement has been excluded accordingly vide RBE No.77/2008.