8th Pay Commission: Amid discussions on the formation of the 8th Pay Commission, the Indian Railway Technical Supervisors Association (IRTSA) and other railway unions have demanded major changes in the methods of Dearness Allowance (DA) and House Rent Allowance (HRA) calculations.
This is the demand of railway unions
Unions say that the basket of goods (Consumer Price Index) used for DA calculation should also include internet fees, bottled water and health insurance premiums as per the needs of the new age. The unions have demanded that when DA reaches 50 percent, it should be merged into the basic pay, as was the case in the Fifth Pay Commission.
Four-tier system for HRA
At present HRA is divided into three categories (X,Y,Z cities). IRTSA has proposed to change this to a four-tier system.
- A category (population more than 50 lakh) – 40% HRA
- B Category (20-25 lakh population) – 30% HRA
- C Category (5-20 lakh population)-20% HRA
- D Category (Population less than 5 lakh) – 10% HRA
Other major demands
- Demand to increase the minimum basic salary from Rs 18000 to Rs 52600-69000.
- Demand to increase the fitment factor for salary hike from 2.86 to 3.83.
- Demand to increase the reimbursement of Children Education Allowance (CEA) to Rs 10000 per month and continue it till post-graduation.
These things are also included in the proposal
The association has also proposed some important changes in the ‘Modified Assured Career Progression Scheme’. Currently, employees get very few financial upgrades during their service, but during a career of 30 years, IRTSA has demanded five financial upgrades. According to this scheme, employees will be compensated upon fulfilling the following conditions: six years of service; 12 years of service; 18 years of service; 24 years of service and 30 years of service. According to the group, this will increase opportunities for professional growth and financial security for railway employees.
The union has also suggested changes in the rules related to leave encashment. According to IRTSA, employees should have the facility to take cash payment in lieu of at least half of the holidays credited to their account while on the job. Apart from this, the organization has also tried to increase the maximum limit of cash payment in lieu of leave at the time of retirement from 300 days to 600 days. The organization believes that employees should be more financially compensated for the vacation time they have accumulated over many years of employment.
Also read:
8th Pay Commission: Big demand of employee unions, new salary should be decided on the basis of 5 members instead of 3.

