7th Pay Commission: Indian Railway Employees can now avail LTC

Following the 7th Pay Commission recommendations, as per the Department of Personnel and Training (DoPT) order, railway employees and their spouses will now be able to avail Leave Travel Concession (LTC) for the first time ever.

7th Pay Commission: LTC now avail for railway employees

7th Pay Commission: Indian Railway Employees can now avail LTC

Indian railway employees, for the first time, can now avail Leave Travel Concession (LTC). This is in accordance with the recommendations of the 7th pay commission. Recently in a circular issued by the Ministry of Personnel, Public Grievances and Pensions Department of Personnel and Training (DoPT).

The allowance has been cleared after the 7th Pay Commission recommended that railway employees be brought into the LTC fold. LTC is a type of allowance given to an employee for covering travel expenses when on a leave. It is tax-exempt under the Income Tax Act.

Earlier, Indian Railway employees and their spouses were not entitled to LTC as they already had the facility of free pass available to them for traveling in the Railways as per the LTC instructions statement.

A railway employee or the entitled members of his/her family and dependent relatives as defined in the railway rules had been issued the privilege pass that comes with a lot of exclusive benefits. 

Indian railway employees get LTC for the first time

The 7th Pay Commission had recommended that they are awarded the benefits of travel concession awarded to other government servants, as per the Ministry of Railways –

# The ‘All-India LTC’ will be purely optional for railway employees.

# Indian railway employees may be allowed to avail all-India LTC once in a block of four years.

# Indian railway employees shall continue to be governed by the Railway Servants (Pass) Rules.

# Indian railway employees will continue to be governed by the Railway Servants (Pass) Rules and availing of the “All India LTC” under the CCS (LTC) Rules by them will be facilitated through a special order under the relevant provision of the said Pass Rules.

# The railway employees would continue to be eligible for other kinds of passes such as the duty pass, school pass, and special passes on medical grounds, as admissible under the pass rules.

# The order further mentioned that the railway employees on deputation to any other organization, including railway PSUs, would also continue to be eligible for optional LTC in lieu of Privilege Pass entitlement.

What are the conditions for latest provision?

# The railway employees will not be eligible for “Home Town LTC”

# If a railway employee has already availed a Privilege Pass, then LTC will not be allowed in that year.

# The railway employees will have to surrender the Privilege Passes (concessional or free tickets) admissible to them in the calendar year in which they intend to avail the LTC facility.

Notably

If the Indian railway employee has already availed of a Privilege Pass, then LTC will not be allowed in that year. 

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