Railways sweeten deal, hike loco pilots’ allowance by 25%, cheers over 2 lakh staff

New Delhi: Meeting a long-standing demand of over two lakh train operations staff, the Railway Board on Friday announced a 25 per cent increase in the kilometerage allowance for loco running staff with retrospective effect from January 1, 2024.

The announcement comes after over two years of persistent representations and protests by various railway employee unions and federations.

An official order issued on Friday said that following a 50 per cent increase in dearness allowance (DA) effective from January 1, 2024, the Board decided to increase the kilometerage allowance for various categories of loco running staff from the same date.

The order noted that the matter was examined in consultation with the Finance Department of the Railway Board and referred to the Ministry of Finance (Department of Expenditure) for concurrence after persistent demand by recognised federations, including the AIRF and NFIR.

The decision has brought cheers among over two lakh employees engaged in train operations who had staged protests in support of the hike.

Unlike other railway employees who receive a Travelling Allowance (TA), loco running staff are granted a kilometerage allowance (KA). While TA for other staff was enhanced on January 1, 2024, the KA had remained unchanged until now, a loco pilot said. According to the All India Loco Running Staff Association (AILRSA), the rates for kilometerage allowance are derived from two components: 30 per cent of basic pay and 20 days of Travelling Allowance.

The association official bearers explained that the previous rates of Rs 525 per 100 kms was based on a TA rate of Rs 800 per day. With TA rising to Rs 1000 due to dearness allowance reaching 50 per cent of basic pay, a proportional revision of the KA becomes necessary. This enhancement is in accordance with the recommendations of the 7th Central Pay Commission. “Having raised the travelling allowance from Rs 800 to Rs 1000, the rate of kilometerage allowance also needed to be enhanced,” a loco pilot said, while complaining about the delay.

Running staff pointed out that similar 25 per cent hikes were implemented in 2011 and 2014 following dearness allowance thresholds, yet the current revision faced a significant delay. K C James, Secretary General of the AILRSA, said that while the board eventually conceded to the genuine demand, the two-year delay caused distress among the staff.

“The undue delay already caused irreparable deterioration in the harmonious relationship,” he said.