Tuesday, July 25, 2017


The General Secretary, AIRF

4, State entry Road

New Delhi - 110055 

Respected comrade,

This Association places this letter before your esteemed self, to have a consensus on the issue of Running Allowance rate and allied matters.

I recognize your effort in representing the grievances of Running staff from time to time in the past. latest one is on 13.7.2017 . The Government has decided that the Running Allowance rate to be decided through bilateral discussions between Railway Board and Federations and to be notified with the concurrence with Ministry of Finance. I think it will be appropriate to bring in your notice that the dispute on running allowance is before NIT.

Com, There is no doubt that your Union is well aware of the issue involved in Running Allowance and RAC formula to arrive at the rate, etc. Before a bilateral discussion take place between your Union and Railway Board in this regard, we wish to place our view, so that Running Staff may not be the suffered by a low running allowance rate as done in 2008, by simply doubling the rate, assuming that the TA rate may be doubled, ignoring the formula to reckoned the rate of running allowance as recommended by RAC 2002. 

The Railway Board likely to advance a view that the present Running allowance rate of Rs 253 need to multiply with a factor of 1.5, as recommended by 7th CPC to other allowances which are partially DA indexed which can’t be agreed since it is unjustified.

In this connection our view is as follows:-

The TA rate was fixed at Rs 340 in 2008 on implementation of VIth CPC recommendation. The TA was raised to 510 when DA reached to 100%, this TA rate of Rs 510 has been raised to Rs 800 or Rs 510 was multiplied by a factor of 1.5 to Rs 765 which was rounded oftoRs 800. There is no dispute in this regard. 

The same multiplying factor of 1.5, will not suit and quite unjustified for revision of Running allowance rate on the following facts.

Point No. 1. In the case of arriving at the Running Allowance rate to Rs 169 in the year 2008 on implementation of VIth CPC, the TA rate has been assumed as Rs 210 and not with the TA rate of Rs 340 recommended by VIth CPC.

The assumed TA rate of Rs 210, to revise the rate of Running Allowance in 2008, has been now raised to Rs 800 which comes to 3.8 times. Therefore the Running Allowance rate fixed in2008 at Rs 169 has to be revised by 3.8 times now. That will come to Rs 642.

Besides this the rise in pay element on implementation of new pay matrix has to be reflected in the Running Allowance rate, as 30% of pay element is also a component to decide the rate. 

The 30% pay element calculated at the minimum pay of 9300 + 4200 GP will come to Rs 4050 whereas the 30% pay element at the minimum L6, i.e. 35400 will come to Rs 10620. A rise in 30% pay element comes to Rs 6570. This amount has to be divided by average KM of 5100, and it comes to Rs 129. So that the amount of Rs 642 on account of raising TA rate and the Rs 129 on account of raising 30% pay element have to be calculated together and the Running Allowance rate comes to Rs 771.

Had the Running Allowance rate arrived in 2008 based on the recommended TA rate of Rs 340, then there is some meaning on the argument of multiplying the present rate by a factor of 1.5.

On an application of RAC 1980 formula with the present pay in L6 and the new TA rate of Rs 800, the Running allowance rate comes as close to Rs 771. 

Mean pay of L6-(35400+112400)/2=73900.

30% of Mean pay = 22170.

20 days TA, 800X20= 16000.

RAC formula, 

((30% Mean Pay +20 days TA)/Average KM)) X 100 = ((22170 + 16000)/5100) X 100 

= Rs 749.

Point No. 2. The recommendation to multiply with 1.5 was exclusively for allowances which are partially DA indexed. Whereas Running allowance rate include a portion of the Pay too. Therefore the recommendation of VIIth CPC cannot be straightaway applicable to Running Allowance rate.

Point No. 3. So long as the VIIth CPC left the issue to Railway Board to have a discussion with bilateral agreement with federations, the recommendation of VII the CPC to multiply with 1.5 or 2.25 is not binding on Railway.

Point No. 4. There may be a view taken by Railway that the Mean pay cannot be taken into, for arriving the rate. It is our opinion that the recommendation of VIIth CPC in para 8.17.77 that the NDA should be fixed according to the pay of the individual employees which as accepted by the Government. That is there will be different rates for each stage in the L6 pay matrix. Therefore any suggestions from the Railway that Running will be fixed with a minimum of the basic pay shall be rejected.

Point No. 5. It may be kept in mind that, the Running allowance committee 1980 recommended the average KM for LP (Passenger) at 3950, which was arbitrarily increased to 5100. It may please be noted that the RAC 1980 recommended that the average kilometerage for Passenger Loco Pilot at 4600 and TA as 21 days. It may please be noted that at present the national average KM of LP(Passenger) stands at 4000 kilometer. Lastly, I hope that you will insist to reckon the KM allowance based on 1980 RAC formula. 

I hope that your good self will appreciate my views and take appropriate step to safe guard the interest of Running Staff.

Thanking you,

                                                                                                                 Yours Comradely 

New Delhi,

19.07.2017.                                                                                              (M. N. Prasad)

                                                                                                              Secretary General



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