7th Central Pay Commission —Transport Allowance to the Railway employees
No.IV/NFIR/7 CPC/Allowance/2016/Part I
Dated: 28/08/2017
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 — Deprivel of higher rate to those working in pay Level 1 & 2-reg.
Ref: Railway Board’s letter No. PC-V/2017/A/TA/1 dated 17/08/2017 (RBE No.96/2017).
NFIR invites kind attention of the Railway Board to the modified instructions issued vide Board’s letter dated 17/08/2017 on payment of Transport Allowance at revised rates, stating that the Railway employees who are drawing pay of Rs.24,200/- & above in Pay Level 1 & 2 of the 7th CPC Pay Matrix are entitled for Transport Allowance @ Rs.3600 plus DA thereon in cities mentioned in the Annexure to Board’s letter dated 03/08/2017 and @ Rs.1800 plus DA thereon at all other places.
In this connection, Federation desires to state that with the issuance of instructions dated 17/08/2017, an anomalous situation has arisen wherein the Railway employees in Pay Level 3, drawing pay Rs. 21,700/- and above upto Level 8 are entitled for Transport Allowance @ Rs. 3600 + DA thereon (in Al/A class cities and in other cities @ Rs. 1800 + DA thereon), while those in Pay Level 1 & 2 are made eligible for the Transport Allowance at the said rate (i.e. Rs. 3600/- + DA thereon) on reaching the Pay of Rs. 24,200/- and above.
Federation further desires to state that pursuant to the recommendations of 5th CPC and 6th CPC, the following instructions were issued:-
Recommendation of 5th CPC – Transport Allowance
RBE No. 179/1997 (rates w.e.f. 01/08/1997)
| S.No | Pay Scale of the Employees | A 1/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 S1OA) were allowed Transport Allowance at the uniform rate of Rs. 100/- p.m. in Al/A class cities irrespective of their pay.
Recommendation of 6th CPC – Transport Allowance
RBE No. 111/2008(rates w.e.f. 01/09/2008) & RBE No.95/2015
| Employees drawing Grade Pay of | Rate of Transport Allowance For A 1/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.7400 | 600 + DA |
From the above, it could be seen that the employees were allowed higher rate of Transport Allowance on reaching the pay @ Rs.7440/- irrespective of their Grade Pay (PB-) viz., GP 1800,1900,2000,2400,2800.
The above position shows that the Board’s instructions dated 03-08-2017 and 17-08-2017 have deprived the Transport Allowance at Rs.3600/- + Da thereon to the staff working in pay Lev 1 & 2 of 7th CPC Pay Matrix due to the restriction that such higher rate of Transport Allowance is allowed on reaching the pay of Rs.244,200, inspite of the fact that they were already drawing higher rate when their pay was Rs.74440/- in 6th CPC Grade Pay 1800,1900,2000,2400 and 2800.
Federation contends that the ends of justice would be met if the Railway employees working in Pay Level 1 & 2 are also allowed payment of Transport Allowance at higher rate i.e.Rs.3600/- + DA thereon when their pay is Rs.21,700/- instead Rs.24,200/-.
NFIR, therefore, requests the Railway Board to make out a case and refer the matter to the Ministry of Finance for removal of aberration for ensuring justice to lower level staff (i.e.Pay level 1 and 2 also). A Copy of the reference made to the Ministry of Finance, may be provided to the Federation for follow up action.
Yours faithfully,
S/d,
(Dr.M.Raghavaiah)
General Secretary
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