The implementation of the Seventh Pay Commission report is likely to send the finances of the railways haywire, with an additional burden of Rs 28,450 crores expected.
The implementation of the Seventh Pay Commission report is likely to send the finances of the railways haywire, with an additional burden of Rs 28,450 crores expected.
Unlike other departments, the railways has to absorb the additional burden of the Pay Commission recommendations from its own resources. The Fifth Pay Commission had given the railways a burden of Rs 60,000 crore, which had turned the railways into an “ill man” among various government departments, said a senior official.
With over 13 lakh pensioners and more than 14 lakh employees, the railways is one of the largest employers in the country. The Seventh Pay Commission report envisages an additional burden of Rs 9,500 crore on account of proposed enhanced pension outgo. The pay hike works out to be roughly 16 per cent of the existing employees, said the official.
The railways will have to bear Rs 4,000 crore alone in meeting the enhanced outgo for the house rent allowances, besides Rs 3,600 crores in increment and other allowances. The additional burden for the 2016-17 budget is estimated to be about Rs 11,000 crore, added the official.
