Charge Allowance in Railways after 7th Pay Commission

Reckoning of Charge Allowance for the purpose of notional fixation of pay and accordingly revision of pension from January 2016

Charge Allowance may have been paid w.e.f. 01.01.2016 to 30.06.2017 at old rates which was admissible before 2016, the same may be reckoned for calculation of retirement benefits of employees who retired between the periods from 01.01.2016 to 30.06.2017

The order is reproduced and given below for your information…

GOVERNMENT OF INDIA(BHARAT SARKAR)
MINISTRY OF RAILWAYS(RAIL MANTRALAYA)
(RAILWAY BOARD)

No. D-43/15/2019-F(E)III

New Delhi, dated: 30.01.202

Sub:- Reckoning of Charge Allowance for the purpose of revision of Pension of Pre-2016 retirees in terms of 7th CPC recommendations – reg.

Also check: 7th CPC Charge Allowance – Railway Board Orders

Consequent upon the recommendations of 7th CPC, instructions were issued vide Board’s letters No. 2016/F(E)III/1(1)7 dated 10.08.2016 and 22.05.2017, regarding revision of pension/family pension of pre-2016 pensioners/family pensioners. A number of references have been received in this office for reckoning of Charge Allowance for the purpose of notional fixation of pay and accordingly revision of pension w.e.f. 01.01.2016.

2. The true nature of charge allowance was earlier considered by the Board and it was decided that the charge allowance, which is actually in the nature of pay restricted under FR-35, should be reckoned as ‘Pay’ as defined in Rule 1303(FR-9)(21)(a)(i) R-11/6th Edition and as such, it would count as pay for the purposes of pension, gratuity etc. as well as for leave encashment. Accordingly, instructions were issued vide letter No. F(E)III/94/PN1/26 dated 23.06.1995.

3. The issue has again been examined in Board keeping in view the earlier decision on charge allowance cited in para 2 above and it has been decided as follows:-

(i) Since, Board had already decided to treat the charge allowance as pay restricted under FR-35 and to reckon it as emoluments for pensionary benefits vide letter dated 23.06.1995, the charge allowance may be taken into account on notional fixation of pay for the purpose of revision of pension/family pension of pre-2016 retirees w.e.f. 01.01.2016 in terms of first formulation as conveyed by Board’s letter No. 2016/F(E)III/1(1)/7 dated 22.05.2017.

Also check: 7th CPC Officiating Pay and 7th CPC Charge Allowance

(ii) Pay fixed in terms of Board’s letter No. PC-VII/2017/1/7/5/8 dated 08.08.2019 w.e.f. 01.07.2017 may also be treated as emoluments in terms of Rule 49 of the Railway Services(Pension) Rules 1993 for the purpose of fixation of pension.

(iii) Since, Charge Allowance may have been paid w.e.f. 01.01.2016 to 30.06.2017 at old rates which was admissible before 2016, the same may be reckoned for calculation of retirement benefits of employees who retired between the periods from 01.01.2016 to 30.06.2017.

Also check: 7th CPC Pension (Notional Pay) Calculator for Pre-2016 Pensioners

4. Please acknowledge receipt

sd/-
(G. Priya Sudarsani)
Director, Finance(Estt.)
Railway Board

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