Fixation of pay of persons re-employed in Railway Service consequent to implementation of 7th Pay Commission’s recommendation
Annexure – ‘A’
Fixation of pay of persons re-employed in Railway Service consequent to implementation of 7th Pay Commission’s recommendation – Summary.
The provisions of Railway Service (Revised Pay) Rules, 2016 shall apply to such persons also who were in/came into re-employment on or after 1st January, 2016, subject to the provisions given below. This decision will cover all Railway servants, who joined Railway Service on re-employment basis other than those employed on contract except where the contract provides otherwise, whether they have retired with or without a pension and/or gratuity or any other retirement benefits, e.g. contributory fund etc. from a civil post or from the Armed Forces.
2. Re-employed persons who become eligible to elect revised pay structure in accordance with these orders should exercise their option in the manner laid down in Rule 5 and 6 of the Railway Services (Revised Pay) Rules, 2016, within three months of the date of issue of these orders or in cases where the existing scales of pay of the posts held by them are revised subsequent to the issue of these orders, within three months of the date of such order.
3. In the case of persons retiring before attaining the age of 55 years and who are re-employed, pension (including PEG and other forms of retirement benefits) shall be ignored for pay fixation to the following extent:-
(a) In the case of ex-servicemen who held posts below Commissioned Officer rank in the Defence Forces and in the case of civilians who held posts below Group ‘A’ posts at the time of their retirement, the entire pension and pension equivalent of retirement benefits shall be ignored.
(b) In the case of Commissioned service officers belonging to the Defence Forces and Civilian pensioners who held Group ’A’ posts at the time of their retirement, the first Rs. 15,000/- of the pension and pension equivalent retirement benefits shall be ignored.
(c)Ignorable part of pension is enhanced from Rs.4000/- to Rs.15,000/-(Rupees Fifteen Thousand) in the case of Commissioned Service Officers and Civil Officers holding Group ‘A’ posts who retire before attaining the age of 55 years.
Note: Pension is fully ignored means that pension is not deducted from pay.
Fixation/drawal of pay of Personnel/Officers re-employed prior to 01.01.2016 and who were in re-employment as on 01.01.2016:
4. (a) The initial pay of a re-employed Railway servant who retired with a pension or any other retirement benefit and whose pay on re¬employment was fixed with reference to these benefits or ignoring a part
thereof, and who elects or Is deemed to have elected to be governed by the revised structure from the 1st day of January, 2016 shall be fixed in accordance with the provisions contained in Rule 7 of the Railway Services (Revised Pay) Rules, 2016. Pension (excluding the ignorable portion of pension, if any), as defined in para 3(1) of RS (Fixation of Pay of Re-employed Pensioners) Orders, 1986 (which was circulated to the Railways vide Railway Board’s letter No.E(G) 1986/EM 1-8 dated 21.01.1987) admissible on relevant date, i.e. date of coming over to the revised pay structure, effective from 1.1.2016 or later, shall be deducted from his / her pay in accordance with the general policy of the Government on fixation and subsequent drawal of pay of re-employed pensioners.
(b) Where a re-employed Railway Servant elects to draw his/her pay in the existing pay structure and is brought over to revised pay structure from a date later than the 1st day of January, 2016, his/her pay from the later date in the revised scale shall be fixed in accordance with the provisions of Rule 11 of the Railway Services (Revised Pay) Rules, 2016 as given below:
“In the case of all employees – the pay in the applicable Level in the Pay Matrix shall be the pay obtained by multiplying the existing basic pay by a factor of 2.57, rounded off to the nearest rupee and the figure so arrived at will be located in that Level in the Pay Matrix and if such an identical figure corresponds to any Cell in the applicable Level of the Pay Matrix, the same shall be the pay, and if no such Cell is available in the applicable Level, the pay shall be fixed at the immediate next higher Cell in that applicable Level of the Pay Matrix.”
Fixation/drawal of pay of employees appointed on re-employment basis on or after 1st day of January, 2016
5. Re-employed pensioners shall be allowed to draw pay only in the Level in the revised pay structure applicable to the post in which they are re¬employed. No protection of the scales of pay/pay structure of the post held by them prior to retirement shall be given.
Note: Revised pay structure in relation to a post will be as defined in Rule 3(ix) of the Railway Services (Revised Pay) Rules, 2016.
6. In all cases where the pension is fully ignored, the initial pay on re¬employment shall be fixed as per Rule 8 of the Railway Services (Revised Pay) Rules, 2016 as given below:
“The pay of employees appointed by direct recruitment on or after 1st day of January, 2016 shall be fixed at the minimum pay or the first Cell in the Level, applicable to the post to which such employees are appointed:
Provided that where the existing pay of such employee appointed on or after 1st day of January, 2016 and before the date of notification of these rules, has already been fixed in the existing pay structure and if his existing emoluments happen to exceed the minimum pay or the first Cell in the Level, as applicable to the post to which he is appointed on or after 1st day of January, 2016, such difference shall be paid as personal pay to be absorbed in future increments in pay.”
7. In cases where the entire pension and pensionary benefits are not ignored for pay fixation, the initial basic pay on re-employment shall be fixed at the same stage as the last basic pay drawn before retirement. If there is no such stage in the re-employed post, the pay shall be fixed at the stage next above that pay. If the maximum pay in the Level applicable to the post in which a pensioner is reemployed is less than the last basic pay drawn by him before retirement, his initial basic pay shall be fixed at such maximum pay of the re-employed post. Similarly, if the minimum pay in the Level applicable to the post in which a pensioner is reemployed is more than the last basic pay drawn by him before retirement, his initial basic pay shall be fixed at such minimum pay of the re-employed post. However, in all these cases, the non- ignorable part of the pension shall be reduced from the pay so fixed.
Note 1: Revised pay structure in relation to a post will be as defined in Rule 3(ix) of the Railway Services (Revised Pay) Rules, 2016.
Note 2: “Basic Pay” in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix.
Note 3: Last pay drawn shall be as per definition of pre-retirement pay in terms of Order 3 of the RS (Fixation of Pay of re-employed Pensioners) Orders, 1986, (circulated to Railway vide Board’s letter No.E(G)86/EM 1-8 dated 21.01.1987) read with DoPT OM No.3/ 19/2009-Estt.(Pay-II) dated 8th November 2010 (circulated to Railway vide Board’s letter No,E(G)2013/EM 1-4 dated 24.07.2013
8. The re-employed pensioner, in addition to pay as fixed above shall be permitted to draw separately any pension sanctioned to him and to retain any other form of retirement benefits.
Fixation/drawal of pay of re-employed persons who retired prior to 1.1.2016 and who have been re-employed after 1.1.2016, and whose entire pension and pensionary benefits are not ignored for pay fixation:
9. In cases where the entire pension and pensionary benefits are not ignored for pay fixation, the initial basic pay on re-employment shall be fixed at the same stage as the last basic pay drawn before retirement. If there is no such stage in the re-employed post, the pay shall be fixed at the stage next above that pay. If the maximum pay in the Level applicable to the post in which a pensioner is reemployed is less than the last basic pay drawn by him before retirement, his initial basic pay shall be fixed at such maximum pay of the re-employed post. Similarly, if the minimum pay in the Level applicable to the post in which a pensioner is reemployed is more than the last basic pay drawn by him before retirement, his initial basic pay shall be fixed at such minimum pay of the re-employed post. However, in all these cases, the non- ignorable part of the pension shall be reduced from the pay so fixed.
10. Fixation/drawal of pay in all other cases: Pay fixation in cases not covered in Order 4(d) will be as per the general principle of ‘pay minus pension’, i.e. while the last pay drawn shall be reckoned for pay fixation, the entire pension shall be deducted from the pay so fixed. Regulation of MSP, however, shall be as per clarification in para 8(ii) of orders contained in Railway Board’s letter No.E(G)/2017/EM 1-7 dated 22.11.2017.