Review of Cost of Over Time Allowance and Travelling Allowance to Railway Servants

Review of Cost of Over Time Allowance and Travelling Allowance to Railway Servants

Measures to reduce cost and improve savings – Review of cost of Over Time Allowance (OTA) and Travelling Allowance (TA)

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No. 2020/E(LL)/OTA/1

New Delhi, dated: 28.08.2020

The General Managers
All Zonal Railways

Sub: Measures to reduce cost and improve savings – Review of cost of Over Time Allowance (OTA) and Travelling Allowance (TA).

Ref: Railway Board’s letter No. 2015-B-235 dated 19.06.2020.

With the outbreak of COVID-19 pandemic, the budgeted earning target of the current year i.e. 2019-20 has been adversely affected. In view of this, the above referred instructions have been issued by the Board to adopt various economy, austerity and cost control measures so that liabilities are met within available funds.

2. Payment of OTA to Railway Servants governed by Para 10 of the Railway Servants (Hours of Work & Period of Rest) Rules, 2005 and Travelling Allowance is one of the steps to control expenditure and thus, a decision has been taken in a Board meeting held on 29.6.2020 that the cases of OTA and TA should be critically reviewed by the General Managers and a ceiling of 50% be imposed on payment of OTA and TA. A copy of Item No. 4 of the Minutes of the Board Meeting held on 29.06.2020 to discuss “Measures to reduce cost and improve saving” is enclosed for ready reference.

3. It may also be kept in mind that deferment of bills/payment is not expenditure control and maximum utilization of existing manpower within the stipulated working hours should be ensured.

4. It has been desired by the Board that the cases of payment of OTA and TA should be monitored closely by PCPOs and PFAs of the Zonal Railways.

5. Please acknowledge receipt.

DA: as above

Sd/-
(Ms. Manju)
Director Estt.(LL)
Railway Board

Enclosure to Board’s letter No. 2020/E(LL)/OTA/1 dated 28.08.2020

Item No. 4 of the Minutes of the Board Meeting held on 29.06.2020 to discuss “Measures to reduce cost and improve saving”:

“Item No. 4: Impose 50% Ceiling on Over Time (Rs. 1300 Cr) and Travelling Allowance (Rs. 2300). There are other allowances which need to be reviewed by Zonal Railways and controlled. Broadly, such semi-variable allowances would be in the range of Rs. 13000 Cr. per annum.

Board’s decision: GMs to critically review and impose 50% Ceiling on booking of Over Time and Travelling Allowance.”

Click to View: Railway Board Orders 2020 Measures to reduce cost and improve savings – Review of cost of Over Time Allowance (OTA) and Travelling Allowance (TA) pdf download

READ ALSO: 

• Ad-hoc Bonus Order for Railway Employees 2023 October 28, 2023Read more…
• 78 Days PLB Bonus to Railway Employees for the Year 2022-23 October 19, 2023Read more…
• Clarification on Payment of Hostel Subsidy for the Academic Years ending March 2020 and March 2021 – Railway Board Orders 2023 September 5, 2023Read more…
• National Holiday Allowance (NHA) to Non-gazetted Employees who are getting higher pay level under MACPS August 3, 2023Read more…
• Employees who Retire on June 30 should be given a Notional /increase in Pension Benefits from July 1 – Railway Board June 27, 2023Read more…
• One Station One Product List PDF June 16, 2023Read more…
• Revised Rate of VDA for Indian Railway Contract Workers wef 01.04.2023 May 12, 2023Read more…
• State Railway Provident Fund Rate of Interest April to June 2023 PDF April 22, 2023Read more…
• State Railway Provident Fund Rate of Interest January to March 2023 PDF January 23, 2023Read more…
• Double Transport Allowance to Physically handicapped in Railway – Railway Board Orders 2023 January 12, 2023Read more…