Thursday 23 September 2021

3. ESTABLISHMENT RULE :- ALLOWANCE

       Chapter 3.      ALLOWANCE Part 1


Some of the Allowances admissible for Indian Railway employees are given below:


1. City Compensatory Allowance.

2. Daily Allowance along with Mileage Allowance for local journey beyond 8 km.

3. Daily Allowance (Popularly known as TA).

4. Dearness Allowance.

5. House Rent Allowance (HRA).

6. Journey on Transfer and Composite Transfer Grant.

7. Mileage Allowance.

8. Night Duty Allowance.

9. Training Allowance.

10. Transport Allowance (TPA)

11. Fixed Conveyance Allowance.

12. Conveyance Allowance to Doctors.

13. Uniform Allowance.

14. Out of turn Allowance.

15. Compensation in lieu of Holidays.

16. Special Compensatory (Tribal/Scheduled Area) Allowances.

17. Special Compensatory (Hill Area) Allowances.


18. Bad Climate Allowance.

19. Remote Locality Allowance(Jammu and Kashmir, Himachal Pradesh, Arunachal Pradesh, Meghalaya, Assam, Nagaland, Manipur, Tripura).

20. NPA to Railway Doctors.

21. Ration money in lieu of Ration subsidy.

22. Washing Allowance.

23. Special Allowance to Railway School Teachers.

24. Special Allowance for Child care for women with disabilities and Educational Allowance for disabled children of Railway employees.

25. Border Area Allowance.

26. Constant Attendance Allowance.

27. Overtime Allowance (OTA).

28. Railway Board Tenure Allowance.

29. Constant Attendance Allowance.


What is City Compensatory Allowance?

In simple words, City Compensatory Allowance or CCA is an allowance provided by companies, (public sector or private sector), to its employees to compensate for the higher cost of living in metropolitan or Tier-1 cities. In some cases, CCA is also offered for employees working in Tier-2 cities as well.


City Compensatory Allowance is offered as per the discretion of the employer. CCA is computed as per the pay scale and grade of an employee and not as per the basic salary. Thus it differs between cities. For instance, an employee working in Mumbai would receive higher a CCA as compared to someone working in Delhi. There is no upper or lower ceiling for CCA and for all taxation purpose, CCA is fully taxable if the amount exceeds Rs. 900/-



Daily Allowance


* Admissible on transfer.

* Admissible to family of Railway servant who dies while in service.

* Re-employed person may also be granted Daily Allowance.

* For long tours it may be given in advance.


Daily Allowance as per Pay Level in Pay Matrix


for Level 14 and above :-

Reimbursement for accommodation in hotel/guest house of up to Rs. 7,500 per day,

Reimbursement of AC taxi expense as per actual expenditure commensurate with official engagements for travel within the city and Reimbursement of food bills not surpassing Rs. 1,200 per day.


For level 12 and 13 :-


Reimbursement for accommodation in hotel/guest house of up to 4,5001 per day,

Reimbursement of AC taxi expense of up to 50 km per day for travel within the city,

Reimbursement of food bills not surpassing Rs. 1000 per day.


For level 9 to 11:-


Reimbursement for accommodation in hotel/guest house of up to Rs. 2,250 per day,

Reimbursement of non-AC taxi expense of up to Rs. 338 per day for travel within the city,

Reimbursement of food bills not surpassing Rs. 900 per day.

For level 6 to 8 :-

Reimbursement for accommodation in hotel/guest house of up to Rs. 750 per day,

Reimbursement of non-AC taxi expense of up to Rs. 225 per day for travel within the city,

Reimbursement of food bills not surpassing Rs. 800 per day.


For level 5 and below :-


Reimbursement for accommodation in hotel/guest house of up to Rs. 450 per day,

Reimbursement of non-AC taxi expense of up to Rs. 113 per day for travel within the city,

Reimbursement of food bills not surpassing Rs. 500 per day.

Daily Allowance (TA- Traveling allowance )

 Known as TA among Railway employees. (TA is rarely paid as most of the official duties are performed by Train).

Daily Allowance is paid for official journey beyond 8 km from headquarters.

It is paid based on duration of absence from headquarters in the following scale:


Absense from headquarters


 * Not exceeding 6 hours-    30%


* Above 6 hours and upto 12 hours- 70%


* Above 12 hours-  100% .


4. DEARNESS Allowance

DA is granted to Railway employees to offset inflation and rising cost of living and inflation.

Basis for DA calculation is All India consumer price index.

DA revision is done to neutralize inflation 100%.

Government will sanction DA on the first of January and on the first of July every year if it is due as per the calculation.


DA is granted to Railway employees to offset inflation and rising cost of living and inflation.

Basis for DA calculation is All India consumer price index.

DA revision is done to neutralize inflation 100%.

Government will sanction DA on the first of January and on the first of July every year if it is due as per the calculation.

After 18 months, the government added 11% DA and gave it to the employees.

# Read this also for know more

* Leave ENCASHMENT RULE of Indian Railways

* Railway establishment rule chapter 1

* Railway establishment rule chapter 2 : Leave Rules

* Road learning of loco pilot

* Swachhta pakhawada in Railways



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