Festive boost: Cabinet clears Rs 1,866 cr Productivity Linked Bonus for 10.90 lakh railway staff

The Union Cabinet on Wednesday approved a Productivity Linked Bonus (PLB) worth Rs 1,866 crore for railway employees, benefiting 10.90 lakh workers in recognition of their performance. The payout, covering 10,91,146 staff, is equivalent to 78 days of wages, according to Union Minister Ashwini Vaishnaw.

The PLB is traditionally paid each year ahead of the Durga Puja and Dussehra festivals. Last year, the government had sanctioned a higher bonus of Rs 2,029 crore, which reached 11,72,240 railway employees.

For 2024-25, the maximum amount payable to an eligible employee is Rs 17,951 for 78 days. Beneficiaries include track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, helpers, pointsmen, ministerial staff, and other Group ‘C’ workers across the Railways.

According to the government, Indian Railways delivered robust performance in 2024-25, moving a record 1,614.90 million tonnes of freight and carrying nearly 7.3 billion passengers during the year.

The timing of the Cabinet’s approval is significant, coming as retailers and businesses anticipate strong demand during the festival season, following recent GST cuts across several categories of consumer goods.

The bonus payout to railway employees—among the largest organised consumer bases in both urban and semi-urban India—is expected to provide a direct fillip to household spending.

Eligibility for PLB

The payment will be made to non-gazetted railway staff across multiple categories, including track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, helpers, pointsmen, ministerial staff, and other Group ‘C’ employees.

The Railways’ solid operational performance last year, marked by record freight loading and passenger traffic, provided the backdrop for the Cabinet’s festive-season announcement.