PCO Allowance – Analysis and Recommendations by 7th Pay Commission
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:
| Section Engineers and Sr. Section Engineers in level 7 | 6% of Basic Pay |
| Non-supervisory staff and Jr. Engineers up to level 6 | 12% of Basic Pay |
Minimum Matrix Pay in Level 6 = 35400
PCO Allowance : (35400 x 12) / 100 = 4248
Minimum Matrix Pay in Level 7 = 44900
PCO Allowance : (44900 x 6) / 100 = 2694