Inconsistency in estimation of cost of staff for creation of work charged establishment

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.F(E)I/2018/Misc./5

New Delhi, dated: 13.09.2019

The General Manager,
All Indian Railways / PUs,
(As per standard mailing list).

Sub : Inconsistency in estimation of cost of staff for creation of work charged establishment reg.

Office of C&AG, vide para 3.7.1.1 in Chapter 3 oaf their Report No.24 of 2015 regarding inconsistency in estimation of cost of staff for creation of work charged post, had inter alia pointed out the non adherence to provisions of Para 776 of Indian Railway Financial Code Vol.-I by several Railways, while working out the cost of staff for creation of work charged establishment.

The said para 776 of IRFC Vol-I inter-alia provides that the cost of a post includes the leave salary and contributions towards passages, pensions, provident fund, bonus and special contribution to provident fund, which the holder of the post may be entitled to. Therefore, while working out the cost of staff for creation of work charged establishment, Average Pay, Dearness Allowance, House Rent Allowance, Transport Allowance, Leave Salary, P.F. Benefits and Gratuity etc. should be taken into account.

Railways / PUs are advised to review the position obtaining on respective Railway / Production Unit in this regard and ensure strict compliance of the codal provision.

(Jitendra Kumar)
Dy.Director Finance Estt-I
Railway Board

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