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Pakistan Railways Personnel Manual----- ---8.2003--Pay--Allowances can be considered as part of pay for some purposes but cannot be called basic pay in a given pay scale--Railway employees allowed 10% increase upon basic pay for purposes of fixation in revised pay scale-55% running allowance, held, rightly not included in basic pay while calculating 10% increase. Syed Intisar Hussain for Appellant. Ch. Nazir Hussain for Respondent. Date of hearing: 15th April, 198.4. JUDGMENT This is an appeal preferred against the decision dated 31-10-1982 recorded by the learned Presiding Officer, Punjab Labour Court No.9, Multan, whereby the grievance petition of the respondent for the fixation of pay after including the 55% running allowance was accepted. 2. The appellant fixed the pay of the respondent in the revised scale by allowing 10% increase upon basic pay plus dearness allowance. The claim of the respondent is that 55% running allowance should have been included in the aggregate before calculating 10% increase. The original letter No. Admn. 76-PC/1, dated 30-4-1977 was amended by P.R. Gazette No.12 of 15-6-1977 by adding the word thereon in section 3. The amended section 3 reads as under:- "In the case of existing employees, the initial pay in the relevant Revised National Scale of Pay shall be fixed at the stage equal to, or if there is no such stage, at the stage next above, the amount arrived at by allowing an increase of 10% over the aggregate of the basic pay in the existing scale and the dearness allowances thereon that would have been admissible, but for these orders, on 1st May, 1977." This is evident from the notification quoted above that there is no mention of running allowance. So, while calculating the increase at 10% the…

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