Pay and Allowances for Railway Employees
- Even though Railway Board has powers to make the policy decisions independently remuneration Policy of Railways of Railways has been based on the remuneration policy of the Government of India.
- Thus the salary and Allowances of Railwaymen are on par with Central Government employees revised from time to time on the lines of the recommendations of Central Pay Commissions.
- So far six Central Pay Commissions have been formed from 1946.
- Cost of Living index has been one of the factors considered while fixing the wages by successive Pay Commissions.
- Salary of a Railway employee consists of Pay and Allowances.
- Allowances are calculated based on the pay and these allowances are meant to offset the raising cost of living/special conditions necessitating some special allowances.
- Besides Productivity Linked Bonus is paid every year even though Indian Railways are not covered by the provisions of Payment of Bonus Act 1956.