Festive bonanza for Railway employees: Cabinet likely to approve productivity linked bonus, say sources

The Union Cabinet is likely to approve productivity-linked bonus (PLB) or annual bonus for Railway employees for the fiscal year 2025-26 amid the ongoing festive season, sources told Business Today TV.

In September, the Union Cabinet chaired by Prime Minister Narendra Modi approved the payment of PLB of 78 days for ₹1,865.68 crore to 10,91,146 railway employees. Productivity-linked bonus to railway employees is made each year before the Durga Puja or Dussehra holidays.

Moreover, the PLB amount equivalent to 78 days's wages is being paid to around 10.91 lakh employees. The maximum payable amount of PLB equivalent to 78 days' wages for each eligible railway employee is ₹17,951.

The amount will be paid to railway staff including Track maintainers, Loco Pilots, Train Managers (Guard), Station Masters, Supervisors, Technicians, Technician Helpers, Pointsman, Ministerial Staff and other Group ‘C’ staff.

At present, the annual bonus is calculated at a wage ceiling of ₹7,000 and for a period of 78 days. The Indian Railways Technical Supervisors' Association (IRSTA) has urged the Centre to hike this ceiling to ₹18,000 plus dearness allowance (DA) for Level-2 employees and above, in proportion to higher pay levels.

"We request your kind intervention for revising the ceiling of monthly emolument for calculating Productivity Linked Bonus (PLB) for Railway employees working in level-1 to Rs.18,000 + DA and calculation of PLB in proportion to higher pay levels for the employees working in level-2 and above. Ceiling of monthly emolument of Rs.7000 for the purpose of calculating PLB for non-gazetted Railway Employees fixed in the year 2016 is unrealistic and not in commensuration with 7th CPC pay matrix and rates of DA increased thereafter," the IRSTA said in a letter addressed to Union Finance Minister Nirmala Sitharaman and Railways Minister Ashwini Vaishnaw.

Based on the ₹18,000 ceiling, the association recommended the government to increase the annual bonus from ₹17,000 to at least ₹46,184.

"Entry pay for lowest grade of Pay Level-1 in Railways was fixed as Rs.18,000 w.e.f. 01.01.2016. If PLB is paid for present minimum basic pay of Rs.18,000 and for 78 days, PLB will be = Rs.18000 X 78 days ÷ 30.4 (ave day per month) = Rs.46,184."