The Government of India has come out with the guidelines relating to the grant of 6^th pay commission's New Pay Band of Indian Railway Employees for Central Government Servants.

The Sixth-Pay Commission report will force the Indian Railways to spend an additional Rs. 6,500 Crore. The Sixth-Pay Commission New Salary is like a Diwali bonus for the Indian Railway Employee. Over 14 Lakh Indian Railway Employees will benefit from this.

Rs 5,000 Crore has already been sanctioned in the current Railway budget and the remaining Rs. 1500 Crore will be arranged through various provisions. In order to offset the additional financial burden arising due top the pay panel report, the Railways will have to increase its revenue earnings and undertake several cost control measures.

According to the arrear payment plan, Railways would make 40% of arrear payment in the current financial year. The remaining 60% of the arrears would be paid in the next fiscal year. It is expected that each Railway employee will take home an average of 21 per cent 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%.

However, this hike in salaries will come at a cost to the Railways. The report has come out with a recommendation to abolish Group D posts in Indian Railways This means that there will be no appointment of gangmen in future and maintenance of track will be outsourced.