Payment of OTA and TA to railway employees by 50% Measures to reduce costs and improve savings

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No. 2020/E(LL)/OTA/1

New Delhi, dated: 28.08.2020

The General Managers
All Zonal Railways

Sub: Measures to reduce cost and improve savings – Review of cost of Over Time Allowance (OTA) and Travelling Allowance (TA).

Ref: Railway Board’s letter No. 2015-B-235 dated 19.06.2020.

With the outbreak of COVID-19 pandemic, the budgeted earning target of the current year i.e. 2019-20 has been adversely affected. In view of this, the above referred instructions have been issued by the Board to adopt various economy, austerity and cost control measures so that liabilities are met within available funds.

2. Payment of OTA to Railway Servants governed by Para 10 of the Railway Servants (Hours of Work & Period of Rest) Rules, 2005 and Travelling Allowance is one of the steps to control expenditure and thus, a decision has been taken in a Board meeting held on 29.6.2020 that the cases of OTA and TA should be critically reviewed by the General Managers and a ceiling of 50% be imposed on payment of OTA and TA. A copy of Item No. 4 of the Minutes of the Board Meeting held on 29.06.2020 to discuss “Measures to reduce cost and improve saving” is enclosed for ready reference.

3. It may also be kept in mind that deferment of bills/payment is not expenditure control and maximum utilization of existing manpower within the stipulated working hours should be ensured.

4. It has been desired by the Board that the cases of payment of OTA and TA should be monitored closely by PCPOs and PFAs of the Zonal Railways.

5. Please acknowledge receipt.

DA: as above

(Ms. Manju)
Director Estt.(LL)
Railway Board

Enclosure to Board’s letter No. 2020 /E(LL)/OTA/1 dated 28.08.2020

Item No. 4 of the Minutes of the Board Meeting held on 29.06.2020 to discuss “Measures to reduce cost and improve saving”:

Item No. 4: Impose 50% Ceiling on Over Time (Rs. 1300 Cr) and Travelling Allowance (Rs. 2300). There are other allowances which need to be reviewed by Zonal Railways and controlled. Broadly, such semi-variable allowances would be in the range of Rs. 13000 Cr. per annum.

Board’s decision: GMs to critically review and impose 50% Ceiling on booking of Over Time and Travelling Allowance.”

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