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Pay panel award to cost Railways Rs. 13,600 crore

budget 2009                   rail budget 2009

The Sixth Pay Commission award to 14 lakh employees and 11 lakh pensioners will cost the Indian Railways Rs 13,600 crore during 2008-09 and over Rs 14,000 crore in the coming fiscal.

The 2008-09 Rail Budget had originally provided for an ad-hoc allocation of Rs 5,000 crore to meet the incremental commitments arising from the Pay Commission award, including Rs 4,000 crore towards salaries and Rs 1,000 crore on account of pensions.

But, according to the revised estimates presented on Friday, the outgo would be much higher at Rs 13,596 crore – Rs 9,000 crore for salaries and the remaining towards pension.

Worse, for the coming fiscal, the total provision is Rs 14,614 crore (Rs 9,952 crore on salaries and Rs 4,662 crore on pension).

“If there was no Pay Commission award, staff costs would have constituted 44 per cent of our ordinary working expenses. But now, this would go up to 50 per cent this fiscal and a budgeted 52 per cent for 2009-10,” the Financial Commissioner of Indian Railways, Ms Sowmya Raghavan. But huge % is for Officer’s Pay & Pensioners Pension Only!

But, according to her, much of this extra burden is due to arrears that are in the nature of a one-time payment liability.

“The arrears component works out to Rs 15,700 crore (Rs 11,000 crore salaries and Rs 4,700 crore pension) payable over two years. The situation will hopefully revert to normal by 2010-11,” she added.

In his Interim Budget speech, the Railway Minister, Mr Lalu Prasad, sought to underplay the Pay Commission impact, claiming that the organisation will implement its recommendations “with relative ease” because of its “strong financial position”.

Unlike the experience during the Fifth Pay Commission, when the Railways ended up deferring payment of dividend to the tune of Rs 2,800 crore in 2001 and 2002, no default will take place this time, he said.

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PME Due Date

Master Circular No. 25

Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974

Subject: Implementation of the Recommendations of the Visual Sub-Committee.

6. Periodical re-examination of serving Railway Employees:

6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:

6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.

Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.

(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.

(b) Absence from duty for a period in excess of 90 days.

(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.

If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.

Ammendment: It was ammended in 1993 as below

Age Group PME Due

Age 00-45 every 4yrs

Age 45-55 every 2yrs

Age 55-60 every year
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993

a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of

NRMU 4 you

6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.