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rule (2) a railway servant shall begin to draw the pay and allowances attached to his tenure of post with effect from the date he assumed the duties of the…

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Summary

rule (2) a railway servant shall begin to draw the pay and allowances attached to his tenure of post with effect from the date he assumed the duties of the post, and shall cease to draw them as soon as he ceases to discharge those duties: 14. On appointment as probationer in another service Authority Rule 1315. (F.R.22B) R.II (1)-Notwithstanding anything contained in these rules, the following provisions shall…

Text of the circular

HANDBOOK ON
PAY FIXATION

SOUTHERN RAILWAY
Vigilance Organisation

दक्षिण रेलवे 
Southern Railway 
सतर्कता संगठन 
Vigilance Organization 
 
Hand Book  
on  
PAY FIXATION 
 
Zonal Performance  
Review Meeting  
2025 - 2026

ii 
 
FOREWORD 
The Indian Railways is one of the largest employers in the 
country, with a vast workforce spread across various 
departments and designations. Ensuring fair and accurate 
pay fixation is crucial for maintaining employee morale, 
productivity, and overall organizational efficiency. This 
handbook aims to provide a wide-range guide to pay fixations 
in railways, covering various situations and scenarios with 
illustrative examples. 
This handbook is crafted as on introductory resource to 
provide a foundational overview and practical insights into 
the Pay fixation.   
The illustrations and examples provided in this handbook 
will help readers understand the practical applications of pay 
fixation rules and regulations. By working through these 
examples, readers will gain a deeper understanding of how to 
navigate the complexities of pay fixation in railways. 
Concerted effort has been made to provide accurate 
information on pay fixation.  This handbook is a valuable 
resource for readers.  Feedback on any errors or omissions is 
welcome to help improve future editions. 
Special appreciation is extended to Shri.K.Padmanaban, 
APO/TPJ, 
Smt.K.V.Balaparvathy, 
AFA/HQRS 
& 
Shri 
N.S.Purushothamaraj, Retired Chief Staff and Welfare 
Inspector/Southern Railway/Chennai for their untiring effort 
and meticulous review of the various Rules/Instructions in 
bringing out this handbook.

iii 
 
DISCLAIMER 
This Booklet is only indicative and is by 
no means exhaustive. Nor it is intended 
to be a substitute for rules, procedures 
and existing instructions/ guidelines on 
the subject. The provisions herein do not 
in 
any 
way 
supersede 
the 
rules 
contained in any of the Railway Codes 
and the circulars referred to herein 
should be read both individually and in 
conjunction with other relevant policy 
circulars for proper appreciation of the 
issues involved. This booklet also should 
not be produced in any Court of Law 
and 
wherever 
necessary, 
reference 
should always be made to the original 
orders on the subject.

iv 
 
FIXATION OF PAY 
 
Rules/Instructions regarding fixation of pay are 
available in  
 
1. Indian Railway Establishment  
 
Code,  Volume-II, 
Chapter-13  
Railway Fundamental Rules-Pay and Increment. 
 
2. Indian Railway Establishment  
 
Manual, Volume – I, Chapter VI  
Pay Increments and Efficiency Bars.  
 
3. Master Circular No. 22  
Absorption and Utilisation of Surplus Staff on the 
railways. 
 
4. Master Circular No. 33 (Extension in Service/Re-
Employment 
of 
Railway 
Servants 
after 
Superannuation - Fixation of pay of re-employed 
Pensioners). 
 
5. Master Circular No. 56  
Fixation of Pay - consolidation of instructions. 
 
6. Subsidiary Instructions issued by Railway Board 
from time to time. 
 
-o0o-

v 
 
INDEX 
S.No Topics 
Page No. 
1 
Introduction 
1 
2 
On initial appointment 
3 
3 
On Promotion to another post carrying 
duties and 
responsibilities of greater 
importance on  regular basis 
6 
4 
In cases where an ad hoc promotion is 
followed by regular appointment without 
break 
8 
5 
In cases where a Railway servant is, 
immediately 
before 
his 
promotion 
or 
appointment on regular basis to a higher 
post, drawing pay at the maximum of the 
lower post 
10 
6 
On Promotion to the new post does not 
involve such assumption of duties and 
responsibilities or greater importance 
11 
7 
On appointment to the new post made on 
his own request 
14 
8 
Fixation of pay in case of employees who 
seek transfer to a lower post  
14 
9 
On re-appointment 
16 
10 
On appointment/promotion to an ex-cadre 
16 
11 
Where a railway servant holding an ex-
cadre post is promoted or appointed 
regularly to a post in his cadre (On 
repatriation from ex-cadre to cadre) 
17 
1

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