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Consequent upon the decision taken by the Government on the recommendations of the
Fifth Pay Commission relating to Compensatory (City) Allowance and House Rent Allowance
vide Ministry of Finance's Resolution No. 50(1)11C/97 dated 30.9.1997 and promulgation of
Railway Services (Revised Pay) Rules, 1997, the President is pleased to decide that in
modification of Railway Board's letter No. PC'-65/HRA-1/3 dated 21.7.65 as amended from time
to time, the Compensatory (City) Allowance and House Rent Allowance to all categories of
Railway employees shall he admissible at the following rates :-
Pay Ranee (Basic Pay( Amount of CCA In class of cities (Rs. Per month)
2. The list of cities/towns classified as A-1, A, B-1 and B-2 for the purpose of CCA is
enclosed at Annexure I. The list of cities/towns classified as A-1, A, B-1, B-2 and C for the
purpose of HRA is enclosed at Annexure IL
3. The cities/towns which have been placed in a lower classification in the above mentioned
lists, as compared to their existing classification, shall continue to retain the existing
classification until further orders and the Railway employees working therein will be entitled to
draw the rates of CCA and HRA accordingly.
4. The special orders relating to grant of HRA/CCA in localities as mentioned in Railway
Board's letter No.E(P&A) 11/90/HRA/CCA-18 dated 19.7.93 shall continue to be applicable.
5. Pay for the purpose of these orders, will be Fay drawn in the prescribed scale of pay.
including stagnation increment(s) and non-practising allowance, but shall not include any other
type(s) of pay like special pay or personal pay, etc. In the case of those employees who opt rz.
retain the existing scales of pay, it will include, in addition to pay in the pre-revised scaie,
dearness allowance and interim relief appropriate to that pay admissible under orders in existence
on 1.1.1996.
6. All other conditions governing grant of CCA and BRA under existing orders &nal:
continue to apply.
7. These orders shall be effective from 1.8.1997. For the period from 1.1.19% tc
31.7.1997, the above allowances will be drawn at the existing rates on the notional pay in the
pre-revised scale.
8. This issues with the concurrence of Finance Directorate.
9. Hindi version of the order will follow.
DA/Two Annexures ( R. Sarathy )
Deputy Director, Pay Commission
Railway Board
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Printed by Sr. Manager, Pig. & Sty: at N. Rly.Ptg. Press Punjabi Bagh R. Road Delhi 110035
and Published by Railway Board, New Delhi-110001.