Grant of Advances - Seventh Central Pay Commission recommendations - Discontinuance of Advance of Leave Salary

7th CPC : Discontinuance of Advance of Leave Salary - Railway Order

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No.E(P&A)I-2017/CPC/LE-2

PC-VII No. 16/2017
RBE NO. 27/2017
New Delhi, dated 23.03.2017

The General Managers and FA&CAOs,
All Indian Railways & Production Units.

Sub: Grant of Advances - Seventh Central Pay Commission recommendations - Discontinuance of Advance of Leave Salary.

The Seventh Central Pay Commission vide Para 9.1.4 had recommended that all the interest free advances being granted to the Central Government employees should be abolished. The Government's decision in this regard has been conveyed by the Ministry of Finance vide their OM No. 12(1)/E.II(A)/2016 dated 07.10.2016. According to the instructions contained therein, the Advance of Leave Salary in addition to six other advances has been abolished.

2. The Government's decision in respect of abolition of advance of leave salary has been considered by the Ministry of Railways in consultation with Finance Directorate. It has been decided to abolish Advance of Leave Salary w.e.f. 07.10.2016. The cases where the advances have already been sanctioned need not be reopened.

3. The provisions in respect of advance of leave salary are contained in Rule No.548 of Indian Railway Establishment Code (IREC), Volume-I, 1985 Edition (Reprint Edition-2008). In view of this, in exercise of the powers conferred by the proviso to Article 309 of the Constitution, the President is pleased to direct that Rule No.548 of IREC Vol.-l may be amended as in the enclosed Advance correction Slip No, 131

4. This issues with the concurrence of the Finance Directorate Railways.

5. Please acknowledge receipt.

DA:- Correction Slip.

(AnilKumar)
DY. Director/E(P&A)-I
Railway Board.
New Delhi, dated 23.03.2017

ADVANCE CORRECTION SLIP TO THE INDIAN RAILWAY ESTABLISHMENT CODE
VOLUME-I, 1985 Edition - (THIRD REPRINT EDITION - 2008 )
Advance Correction Slip No. 131

The following amendments may be made to Rule No.548 of the Indian Railway Establishment Code, Volume-I, 1985 Edition (Reprint Edition - 2003):-

Rule 548 may be substituted as under:
548 - Advance of Leave Salary.
The Provision stands deleted as the advance in this regard has been abolished by the Seventh Pay Commission.

{Authority : Railway Board's letter No. E(P&A)I-2017/CPC/LE-2 dated 23.03.2017)

Source : NFIR

NJCA Reviewed the recommendations of the Pay Commission as a preliminary exercise

NJCA Reviewed the recommendations of the Pay Commission as a preliminary exercise

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers Federation (ITF)
No.IV/NJCA(N)/2014/Part-I

Dated:20-11-2015

The General Secretaries of
Affiliated Unions of NFIR
Dear Brother,

Sub: Seventh Central Pay Commission’s Recommendations – reg.

By this time, I hope you would have downloaded the Report submitted by the Seventh Central Pay Commission to the Government from the pay Commission’s website and studies the same.

The leaders of National Joint Council of Action met at New Delhi today at 11.00 hours on 20-11-2015 and reviewed the recommendations of the pay commission as a preliminary exercise. It has been felt that the pay Commission has rejected our demand for minimum wage of Rs.26000/- p.m. The minimum Salary of Rs.18000/- recommended by the pay Commission is not only very meagre (increase of Rs.2250/- only) and is not based on any rationale. The so called publicity of 23.55% hike in the salary of Central Government employees is in fact incorrect as the increase of pay would be 14.29% only i.e less than half of the pay hike given by the Government during 1996 (Vth CPC) and about one third of pay hike from January 2006 (VI CPC) when the percentage hikes were given to the extant of 31 & 54% respectively as admitted by the Chairman VIIth CPC under para 4.2.9 at page 63 of the report. The cogent case placed before the pay Commission by us has been mutilated. It may also be noted that take home pay of the employees as a result of implementation of VIIth CPC report will be less in view of following factors:-

(a) Deduction towards Central Government employees Group Insurance Scheme – Rs.1500/- per month (as per VIIth CPC recommendation),
(b) Deduction @ 10% of pay i.e.1800/- towards Pension Subscription (NPS) every month,
(c) Income Tax deduction.

A Statement showing the adverse impact of VIIth CPC recommendations prepared by the NJCA is enclosed for guidance.

Recommendations of 7th CPC provide for higher pay hike to the higher officials but only meager sum to the low paid employees i.e. low paid employees have been given lower multiplier factor of 2.57 limiting pay upto Rs.18,000/- p.m. whereas senior Officials have given multiplier factor of 2.78/2.81 to the Secretary level Officers and above by giving them pay upto Rs.2,25,000/- & Rs.2,50,000/-. It will provide financial benefit of Rs.2250 p.m. to low paid employees whereas higher officers will get minimum benefit of Rs.45,000 to 50,000 p.m.It is also relevant to point out that the staff Side JCM demanded ratio between the minimum wage earner and higher wage earner to be brought down to 1:8 in consonance with the directives/principles of the constitution of India. Here the 7th Pay Commission has widened the disparity and has made the same to 1:14. Also the existing 52 Allowances have been abolished unjustifiably. Notably the rates of existing House Rent Allowance (30,20 & 10) have been reduced to 24,16 & 8 percent.

The National Joint Council of Action has decided to observe Black Day on 27th November 2015 wearing Black Badges all over the country to protest against the perverse recommendations of the VIIth Central Pay Commission. All the affiliates are advised to communicate with the Railway employees of all categories to show their anger against the recommendations of the Commission. Report on the activities of 27th November, 2015 may be sent to the Federation immediately.

DA/As above

Yours Faithfully,

(Dr.M.Raghavaiah)
General Secretary

Source: NFIR