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7th Pay Commission Indian Railways: Additional Burden of Rs. 28450 crore for salary hike

Due to implementation of 7th pay commission recommendations, an additional financial burden of Rs 28,450 crore on the Indian railways towards its salary bill approved by the government. The Indian Railways current employees are around 13 lakh.

Indian Railways logo

Indian Railways logo

7th Pay Commission Indian Railways: Additional Burden of Rs. 28450 crore for salary hike

After the government appointed a committee of secretaries to oversee its implementation,
The pay commission had submitted its report in November 2015. “All this was taken account during the preparation of the budget in February. We’ll be able to manage it on our own,” a senior railway official told.

The Indian railway unions are planning to go on indefinite strike from July 11 across country for Unhappy with the 7th pay commission hike. “It’s a meagre increase in salary for the lowest grade as the take home salary has just gone up by Rs 1500. None of our recommendations have been accepted. We have called for an indefinite strike,” SG Mishra, General Secretary, AIRF told.

In additional the estimates of non fare revenue would go up by Rs 7,000 crore from the current Rs 3,000 crore in Indian Railway. Non fare revenue means Indian Railway’s income from advertising and land monetization in commercial exploitation of railways. Definitely non fare revenue would help it bite the pay commission bullet.

The Indian railway minister Suresh Prabhu has set the operating ratio (OR) for the current financial year, the amount railway spends to earn 100 rupees, at 92%.
There are around 1.3 million employees in Indian Railways. The pay commission’s recommendations approved by The Union Cabinet’s come at a time railways’ trade unions are up in arms against the provisions made.

Read Also: 7th Pay Commission Pay Scale, and Salary for All Central Government Departments

The two Indian Railway unions, All India Railway men Federation (AIRF) and National Federation of Indian Railway men (NFIR) have to go on an indefinite nationwide strike from 11 July against recommendations.

News first published on July 5, 2016.