The administration had earlier informed the staff that the kilometre allowance and certain other allowances would not be paid for February owing to financial constraints.
Southern Railway will disburse the kilometre allowance, a key component of the earnings of Loco Pilots and Train Managers, after trade unions objected to its proposed withholding for February.
The Southern Railway Mazdoor Union (SRMU) said its general secretary N. Kanniah took up the issue with the Railway Board and succeeded in getting the proposal withdrawn. The administration had earlier informed the staff that the kilometre allowance and certain other allowances would not be paid for February owing to financial constraints, as the expenditure had exceeded the budgetary allocation for the current fiscal.
Describing the move as a matter of serious concern, SRMU, the largest employees’ union in the zone, said that withholding the kilometre allowance would have caused widespread anxiety among the staff. “The move was likely to affect staff morale and operational efficiency, potentially leading to disruptions in train services across Southern Railway,” said Paul Maxwell Johnson, Chennai divisional secretary of the union.
According to him, Mr. Kanniah, who is also the president of the All India Railwaymen Federation, flagged the issue at the highest level, highlighting the essential and continuous nature of running staff duties and the direct operational impact of withholding a substantial portion of their earnings. “After sustained efforts and a constructive dialogue, the Railway Board agreed to withdraw the proposal, thereby safeguarding the legitimate earnings of running staff and ensuring uninterrupted train services,” Mr. Johnson said.
Meanwhile, the All India Loco Running Staff Association submitted a memorandum to the Financial Adviser and Chief Accounts Officer of Southern Railway, stating that the kilometre allowance constitutes nearly 30% of the pay of Loco Pilots and Train Managers and is protected under the provisions of the Indian Railway Establishment Manual. It argued that non-payment of the allowance would effectively amount to a reduction in pay rather than mere withholding of an allowance.
“No general or specific orders have been issued authorising a pay cut for any category of employees. In the absence of such instructions, curtailing the pay element of the crew alone is highly discriminatory and objectionable,” it said, adding that the sudden exclusion of the allowance from the salary bill had caused serious financial hardship and resentment among the staff.
Southern Railway had initially informed employees that around 12 allowances would not be paid for February.
However, late on Monday evening, it was decided that only kilometre allowance, travel allowance, and overtime allowance would be withheld. When contacted on Tuesday evening, the zone’s official spokesperson said there was no further update.
Meanwhile, the Southern Railway, in a post in X, said it was committed to the welfare of its employees. A delay of 10-15 days in payment of certain allowances “happens sometime due to late submission of claims by employees, calculation errors in claims on the part of employees or administrative reasons, etc.,” it said.
Published – February 25, 2026 12:04 am IST
