Commercial Allowance (Para 8.17.21) Report of the Committee Allowance – 7th Pay Commission

Commercial Allowance (Para 8.17.21) Report of the Committee Allowance – 7th Pay Commission

3.5.1 Commercial Allowance (Para 8.17.21)
Existing Provisions: This allowance is granted to Announcers, ECRCs, Commercial clerks, TCs of Indian Railways for performing certain commercial duties at the rate of ₹180 per month.

Reasons mentioned by 7 th CPC for recommending abolition: The amount of the allowance is meagre and no valid justification has been provided for its continuation.

Demand:
National Council (Staff Side), JCM: This allowance should be retained as it is granted to commercial staff posted in „D‟ class stations where no ASM is posted.

Analysis and Recommendations of the Committee:
The Committee is of the view that the duties performed by those receiving this allowance may be of a commercial nature but are part of their normal duties. As such, the demand for its continuation is not justified. The Committee further notes that the Ministry of Railways has also not supported the demand for continuation of this allowance. Administering an allowance, even if the rates are meagre, entails administrative costs. Therefore, the recommendation to abolish this allowance has to be seen as part of the simplification and rationalization of the
entire structure of allowances undertaken by the 7th CPC. The Committee, therefore, recommends that the 7th CPC recommendation to abolish Commercial Allowance may be accepted cpc