Transport Allowance to the Railway employees – Deprival of higher rate to those working in pay Level 1 & 2



No.IV/NFIR/7CPC(Imp)/Allowance/2016/Part I

Dated: 05/04/2018

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 – Deprival of higher rate to those working in pay Level 1 & 2-reg.


(i) Railway Board’s letter No.PC/V/2017/A/TA/1 dated 17/08/2017 (RBE No.9612017).
(ii) NFIR’s letter No.IV/NFIR/7CPC/Allowance/2016/Part I dated 28/08/2017.
(iii) Railway Board’s letter No.PC-V/2015/PNM/NFIR/4 dated 17/20-1l-2017.

Federation does not agree with the view taken by the Railway Ministry in this case as conveyed to NFIR vide Board’s letter dated 17/20-11-2017. Federation wants that the Railway Ministry should prepare proper case based on the facts and contentions of NFIR as explained in our letter dated 28/08/2017 tobe placed before DoP&T/MoF.

  1. Federation reiterates that as a result of issuance of instructions dated 17/08/2017, a situation has arisen wherein the Railway employees in Pay Level 3, drawing pay Rs. 21,700/- and above upto Level 8 hitherto entitled for Transport Allowance @ Rs. 3600 + DA thereon (in A1/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 only when their pay reaches Rs.24,2001/-.

III. Further it is relevant to take note that pursuant to acceptance of the recommendations of 5th CPC and 6th CPC, the rates revised as follows:-

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

S.No. Pay Scale of the Employees A1/ A class city Other Places
1 Rs.8000-13500 or above 800 400
2 Rs.6500-10500 or above but below Rs.8000-13500 400 200
3 Below Rs.6500-10500 100 75

Above position reveals that all the employees working 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 irespective of their pay.

(b) 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  Railway employees.

Employees drawing Grade Pay of Rate of Transport Allowance for A1/ A class cities
GP 5400 & above 3200 + DA
GP 4200 – 4800, GP below 4200 and pay in pay band: Rs.7440 1600 + DA
GP below 4200 and Pay below Rs.7440 600 + DA
  1. From the comparison of two tables mentioned above, it could be seen that the Railway employees were allowed higher rate of Transport Allowance on drawing pay Rs. 7440/- irrespective of Grade Pay/Pay Band. The modified Board’s instructions issued vide letter dated 03/08/2017 and I7/08/2017, 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/- ignoring the fact that the staff were already drawing pay @ Rs.7440 in 6th CPC Pay Band/Grade Pay.

Federation, therefore requests the Railway Ministry to kindly anange to make out case in the light of NFIR’s contentions for rendering justice to those staff of Pay Level 1 & 2 for granting Transport Allowance at rate i.e. 3600/- + DA thereon when they reach the corresponding pay @ Rs.21700/- and not 24200/- to meet the ends of justice and refer to MoF.

A copy of the reference made to the MoF may be endorsed to the Federation for taking follow up action.

Yours faithfully,
General Secretary

Source: NFIR

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