Overtime Allowance: RBE No.23/2000 – On Revision of Pay Scales

No.PC-V/97/I/7/17, dated 09.02.2000

S.No.PC-V1/251

Sub:   Grant of Overtime Allowance to Railway employees consequent upon revision of pay scales and allowances.

Ref:  Board’s letter of even number dated 09.02.1998 (RBE No.32/1998).

Consequent upon revision of pay scales w.e.f. 01.01.1996, instructions were issued on the subject of rate of Overtime Allowance in reference to revised pay scales vide Board’s letter of even number dated 09.02.1998 (RBE No.32/1998). The question as to whether Transport Allowance should also be included within the purview of emoluments has been under consideration for sometime past. The matter has been examined in consultation with the Ministry of Labour and it is clarified that Clause (2) of Section 59 of the Factories Act, 1948 provides that ‘ordinary rate of wages means the basic wages plus such allowance, including the cash equivalent of the advantage accruing through the concessional sale to workers, as the worker is for the time being entitled to, but does not include a bonus and wages for overtime work.’ Accordingly, since the Transport Allowance has not been excluded from the compensatory allowance etc., under clause (2) of Section 59 of the Factories Act, all other allowances like HRA. CCA, Transport Allowance etc., should be included in the basic rate of wages for the purpose of computation of Overtime Allowance.

In view of above, an additional sub-clause may be added under clause (a), para (4) of Board’s letter of even number dated 09.02.1998 (RBE No.32/1998) under reference as under:

“(vi)  Transport Allowance .”

Download Railway Board Circular RBE No.23/2000

Forward reference ⇒ RBE No.