New Delhi: The Sixth-Pay Commission report which has come as a pre-Diwali gift for the 14 lakh workers in Indian Railways, will cost their employer about Rs6,500 crore in the current fiscal.
While Rs5,000 crore has already been earmarked in the current Railway Budget, “We have to make provision for an additional Rs1,500 crore to meet the requirement,” a senior Railway Ministry official said.
To offset the additional financial burden arising from the pay panel report, the Railways will have to increase its revenue earnings and undertake cost control measures.
“All general managers of Zonal Railways have been instructed to initiate cost control measures in their respective zones. They have also been asked to take steps to increase earnings,” the official said.
According to the arrear payment plan, Railways would make 40% of arrear payment in the current financial year.
“Rest would be paid in the next fiscal,” he said.
The government on Friday finalised the notification on the pay panel report. It would cost the exchequer Rs22,000 crore this year.
It is expected that each Railway employee will take home an average of 21% higher salary next month.
The salary increase for Group A officers will be much more than 21% and in cases of some senior Railway Board officials, the hike is almost 50%, said Basudeb Acharya, chairman of the Parliament Committee on Railways.