Call of All India Loco Running Staff Association (AILRSA), South Zone
ALL INDIA LOCO RUNNING STAFF ASSOCIATION
SOUTH ZONE
Dear Loco Running staff,
The All India Loco Running Staff Association (AILRSA) invites you to join our Running Staff’s CONVENTION on 12th February 2025, where critical issues impacting their livelihood and working conditions will be discussed. One of the most pressing matters we are fighting for is the pending enhancement of the Kilometer Allowance (KMA) and addressing the unfair treatment of Loco Pilots. While other allowances (such as DA) have been enhanced in line with the rising costs, Kilometer Allowance (KMA) remains untouched. This disparity affects the financial well-being of Loco Pilots and needs immediate redressal.
By the nature of the duty of Running Staff, they have to stay out of their headquarters for most of their service. They are therefore entitled to receive Travelling Allowances. In order to induce them to work more, the Ministry of Railways traditionally gave a portion of PAY and TRAVELLING ALLOWANCE through Running Allowance way back from 1919 – when the Company Railways existed.
Though the system of Running Allowance was in vogue from 1919 and was considered by I, II & III Central Pay Commissions and two Running Allowance Committees, none quantified the portion of Pay in Running Allowance. Due to continuous demand from the Running Staff to give clarity on the components in the Running Allowance for proper fixation of Running Allowance, the Running Allowance Committee was appointed in 1980. It quantified the portion of Pay as 30% to be given through Running Allowance to motivate the Running Staff. Further IV and V CPCs recommended continuing it. The Running Allowance Committee, which was constituted after VI CPC (2008) also endorsed it. At present, this element of incentive stands at 30% of their Basic pay. According to the scheme, a formula has been derived by the Running Allowance Committee of 1980 to arrive at the rate for 100 km, which is as follows:
30% of the mean of the scale of Pay of Loco Pilot (Passenger) + 20 Days TA X 100
Monthly average kilometre of Loco Pilot Passenger
As per the recommendation of the 7th CPC, when DA was increased to 50%, many allowances including TA were increased by 25%. Thus Running Allowance should have increased by 25%, along with the increase of TA, as it was increased two times during the 6th CPC regime in the same manner. AILRSA vehemently protests against this injustice and demands to issue orders to enhance Running Allowance by 25% from 01.01.2024.
The Subject matter of Running Allowance is not dealt with by the 7th Pay Commission, as it left the matter to the Railway Board, as requested by the Ministry of Railway and Recognised Staff Union (AIRF &NFIR). Therefore taking a plea that the Pay Commission has not recommended the Running allowance to be DA indexed is unwarranted and misleading by the Railway Administration.
As the Daily Allowance / Travelling Allowance is DA indexed and accordingly the said Allowances are enhanced by 25% w.e.f. 01. 01.2024. The Running Allowance rate is derived from 30% Pay Element and 21 days DA/TA. When one of the components either Pay or DA/TA has enhanced, the Running Allowance rate has to be proportionally enhanced invariably. On the previous two occasions in the earlier 6th Pay Commission regime too, the Running allowance rate had been enhanced when DA reached 50% and 100% respectively.
Even then also, the Running Allowance was not DA indexed, nor was the formula for deriving Running Allowance revised. Being in the identical position now, denying 25% enhancement to the Running Allowance rate when DA reached 50% is unfair and step-motherly treatment towards Running staff at the hands of the Railway Board. Unless we fight unitedly against this injustice, the Railway management will not consider our genuine demands. So rally behind AILRSA and strengthen our agitations to achieve our birthright of proportionate Running Allowance with respect to TA/DA.
70% Tax Exemption (IT Exemption for TA portion) for Kilometer Allowance (KMA):
At present, Rs. 10,000/- per month from the Kilometer Allowance earned by the Running Staff is exempted from Income Tax under Section 10(14) (ii) of IT Act, vide rule 2BB in sub-rule (2) of Income Tax Rules, 1962 and notified in IT Notification No.85, dated 22-11-2010 (Ref. RB Lr. No.F9x)II-91/23/3, dated 28-12-2010). Though 70% of the Kilometer Allowance (KMA) i.e., the TA portion is eligible for Tax exemption, the exemption limit is fixed at Rs. 10,000/- per month, which has remained stagnant- since the 6th Pay Commission i.e., 2016. This is inadequate given the rising expenses. We demand that the tax exemption limit be revised and made more reasonable.
Earlier RB Lr.No.E(P&A)II-81/RS-9(I/Tax), dated 11-12-1982 stipulates that, for the purpose of Income Tax, 30% of actual Running allowance earned by the Running Staff shall be reckoned as “Pay” and the balance 70% of the Running allowance shall be exempted from the Income Tax. Therefore, our demand for IT Exemption of 70% of running Allowance per month is entirely justified and it is to be pursued vigorously.
Our Main Demands:
Allow 25% increase in Kilometer Allowance (KMA).
A review of tax exemptions for Kilometer Allowance (KMA), which should be aligned with inflation and cost of living.
Loco Pilots are the backbone of the Indian Railway system. The work of Running Staff does require immense dedication, skill, and long hours, often under difficult conditions. It’s time that Running Staff’s allowances reflect the crucial role they play.
Let us come together with fellow Loco Pilots, and Assistant Loco Pilots to raise our voice for justice. Together, we can bring about the long overdue change!
Let’s make our voices heard!
AILRSA SOUTH ZONE