Indian Railways to cut employees' allowances 50%, Overtime, TA & DA on radar

Indian Railways is planning to cut overtime, TA and DA allowances of its employees. To compensate the loss being occurred due to lockdown, Indian Railways seems to compensate from more than 13 lakh Railway employees, as published in report. The decision of Indian Railways would result 35% cut in salaries of employees and 50% cut in employees' allowances.

Being a largest employer Indian Railways is facing huge deficit amid lockdown as all services of Ralways' revenue are on hold till May 3. This cut in allowances may return some recovery to the Indian Railways, report said.

Indian Railways to cut employees'allowances

The Indian Railway is on strategy to compensate for the losses incurred due to lockdown and extended lockdown 2.0, till May 3. Based on the decision now the Railways will run over the allowances of its employees. According to report Indian Railways has made plan to abolish overtime duty allowances, TA and DA of its employees. This would result in 50% cut in overall allowances, according to source.

After this decision the allowances which were given to Loco-pilots on per kilometre bases, would be hampered. Alongside of per kilometre allowances, overtime duty allowances will also be cut 50% as compensation. Following cut in salaries & allowances are under consideration-

• Mail- Express Loco-pilots who used to get Rupees 530/- over 500 kilometres, likely to face 50% cut
• The deduction in allowances and overtime charges cut likely to be imposed for six months. From 10-35% deduction is being assumed.
• Travel, Medical checking, Kilometre allowances would be reduced 50% for one year.
• If any employee doesn’t attend duty for one month, TA would be deducted 100%
• Indian Railways is also likely to review Teaching allowances given to employees.

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