Railway employees may soon see their salaries hiked following a significant increase in kilometrage allowance and other payments for running staff. The revised rates will apply retroactively from January 2024. The decision covers all categories of train crew, including loco pilots, assistant loco pilots, guards and other operational staff.
The Railway Board has announced a 25% increase in kilometrage Allowance (KA) and allowance in Lieu of Kilometrage for running staff across the Indian Railway Network.
According to the All India Loco Running Staff Association, the kilometrage allowance is calculated using two elements: 30% of the employee’s basic pay and 20 days of Travelling Allowance.
Revised allowance structure implemented
The proposal was reviewed in coordination with the Finance Directorate of the Railway Board and subsequently forwarded to the Ministry of Finance for approval. This process followed continuous demands raised by recognised federations such as the All India Railwaymen Federation and the National Federation of Indian Railwaymen.
The revision has been carried out under Railway Services (Revised Pay) Rules, 2016. Other conditions related to eligibility and calculation of allowance remain unchanged. The increase aligns with the recent revision in Dearness Allowance (DA), which reached 50% of basic pay, triggering a proportional adjustment in kilometre-based compensation.
Rationale and impact on running staff
Running staff in Indian Railways do not receive standard travelling allowance (TA) like stationary employees. Instead they are compensated through kilometrage allowance, which is derived from a combination of basic pay and TA- linked components. The latest revision addressed the gap created after the TA hike in 2024, ensuring parity in compensation structures.
The decision follows long-standing demands from employee unions and staff associations, who had been seeking revision since the DA crossed the 50% threshold. The delay in implementation had been a point of concern among employees, as previous revisions were carried out under similar conditions.
With this revision, over two lakh running staff are expected to benefit. The increase is aimed at improving financial compensation for employees involved in continuous train operations, which require long hours and high operational responsibility.
The Railway Board stated that the move reflects a policy commitment to staff welfare while maintaining alignment with pay commission recommendations and existing allowance frameworks.