By Central Pay Commission Admin
Night Duty Allowance Update: Railway Board Forwards Proposal to Remove ₹43,600 Basic Pay Ceiling
New Delhi | January 4, 2026
NEW DELHI: In a major relief for thousands of Station Masters, Loco Pilots, and Guards, the Ministry of Railways has reignited the fight to remove the “Discriminatory Ceiling” on Night Duty Allowance (NDA). Currently, as per the DoPT order, any employee whose Basic Pay exceeds ₹43,600 is paid NDA based on a “notional” basic pay capped at this limit, causing massive financial loss.
Responding to intense pressure from Unions ahead of the 8th Pay Commission formation, the Railway Board has forwarded a fresh proposal to scrap this limit. If approved, employees will be paid NDA on their Actual Basic Pay, with arrears dating back to July 1, 2017.
Current vs. Proposed Rule
The proposed formula uses (Actual Basic Pay + DA) / 200 to calculate the hourly rate, removing the artificial cap.
| Scenario | Current Rule (Capped) | Proposed Rule (Uncapped) |
|---|---|---|
| Basic Pay Considered | Max ₹43,600 | Actual Basic (e.g., ₹62,200) |
| Hourly Rate (Approx) | ₹353 / hour | ₹503 / hour |
| Monthly Benefit | – | + ₹3,000 to ₹5,000 |