7th CPC PCO Allowance – Analysis and Recommendations

7th Pay Commission Production Control Organization (PCO) Allowance – Eligibility, Rates and Recommendations

Production Control Organization (PCO)

This allowance is granted to select staff of Production Control Organization (PCO) in Workshops and PUs of Indian Railways to compensate them for the loss in Incentive Bonus. The present rate is 7.5 percent of Basic Pay for eligible staff in GP 4600 and 15 percent of Basic Pay for eligible staff up to GP 4200. No demands have been received regarding this allowance.

Analysis and Recommendations

In line with our general approach of rationalizing the percentage based allowances by a factor of 0.8, the following rates of PCO allowance are recommended:

Eligibility Pay Matrix Level for PCO Allowance:

• Minimum Matrix Pay in Level 6 = Rs. 35,400
• PCO Allowance : (35400 x 12) / 100 = Rs. 4,248
• Minimum Matrix Pay in Level 7 = Rs. 44,900
• PCO Allowance : (44900 x 6) / 100 = Rs. 2,694

PCO Allowance in Railways after 7th Pay Commission

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

PC-VII No. 50
RBE No. 112/2017

New Delhi, dated 30.08.2017.
No. E(P&A)I-2017/SP-1/WS-1

The General Managers and Principal Financial Advisers,
All Indian Railways & Production Units.

Sub: Implementation of recommendations of Seventh Central Pay Commission accepted by the Government- relating to grant of PCO Allowance to staff of Production Control Organization.

Consequent upon the decisions taken by the government on the recommendations of the Seventh Central Pay Commission relating to revision of allowances, the President is pleased to revise the rates of PCO Allowance as under:

• Section Engineers and Sr. Section Engineers in level 7 in the Pay Matrix (VII CPC) – 6% of Basic Pay
• Non-supervisory staff and Jr. Engineers up to level 6 in the Pay Matrix (VII CPC) – 12% of Basic Pay

Section Engineers and Sr. Section Engineers in level 7 in the Pay Matrix (VII CPC) 6% of Basic Pay Section Engineers and Sr. Section Engineers in level 7 in the Pay Matrix (VII CPC) 6% of Basic Pay Non-supervisory staff and Jr. Engineers up to level 6 in the Pay Matrix (VII CPC) 12% of Basic Pay2. The revised rates of allowance shall be admissible with effect from the 1st July, 2017.

3. All other terms and conditions envisaged in Board’s letter Nos. PC-IV/86/SP/1 dated 16.10.1989, PC-IV/89/SP/2 dated 28.03.1990 and PC-IV/89/SP/2 dated 31.05.1991 shall remain unchanged.

4. The PCO Allowance will not be reckoned for any benefit such as DA, HRA, CCA, pension, gratuity and fixation of pay on promotion.

5. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

6. Please acknowledge receipt.

sd/-
(Anil Kumar)
Dy. Director/E{P&A)-IRailway Board.