With plans to upgrade all licensed coolies to Grade D employees and the anticipated upward revision in salaries, based on the 6th Pay Commission report, the railways? salary bill is likely to be much more than what it has budgeted for 2008-09.
The railways currently engage about 38,000 licensed coolies. Grade D employees of the railways earn a minimum of Rs 2,550 per month to a maximum of Rs 3,200. Wages of the upgraded coolies would amount to a minimum of Rs 9.69 crore annually.
The railway ministry in its Budget presented on Tuesday has increased its working expenses to Rs 50,000 crore to partly accommodate the rise in its salary and wage bill by Rs 4,151.34 crore.
Of this amount, the ministry has kept aside Rs 4,000 crore under ?wages and salaries? for implementing the recommendations of the 6th Pay Commission, according to the Rail Budget document.
The railways would be able to give an average salary hike of Rs 2,857 only to its 14 lakh employees from the Rs 4,000 crore fund, irrespective of the 6th Pay Commission recommendations. However, with indications of a substantial salary hike after the Pay Commission?s report, the railways may find its Budgeted funds too meagre.
Analysts pointed out that the railways could not ideally give the same amount as a salary hike to its cadres which comprises 15,800 officers in A and B grades, 9,06,600 in Grade C and 4,84,000 employees in Grade D.
Ministry officials declined to comment on the issue, saying a final decision on the pay revision would only be taken by the government on the Pay Commission?s report. The railway will, however, go ahead with its plans to upgrade all licensed coolies, an official said.
The railways? operating ratio is expected to rise to 81.4% in the coming fiscal due to the anticipated revision in pay scales. Going beyond the Rs 4,000-crore budgeted target would hurt railway finances to some extent, the official added.