Cabinet Approves Rs 1,865 Crore Productivity Bonus for 10.9 Lakh Railway Employees Ahead of Festive Season
Cabinet Approves Rs 1,865 Crore Productivity Bonus for 10.9 Lakh Railway Employees Ahead of Festive Season
The Union Cabinet has approved a 78-day Productivity Linked Bonus (PLB) worth Rs 1,865.68 crore for nearly 10.91 lakh railway employees, providing a festive season boost before Durga Puja, Dussehra, and Diwali.
According to the Ministry of Railways, the annual bonus is equivalent to 78 days’ wages, with a maximum payout of Rs 17,951 per employee. The beneficiaries include track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, helpers, pointsmen, ministerial staff, and other Group C employees.
Recognition of Railway Staff Contribution
The PLB has become a yearly festival bonus for non-gazetted railway staff, acknowledging their role in improving efficiency and service delivery. Officials said this year’s package reflects the Indian Railways’ record performance in FY 2024-25, during which it moved 1,614.90 million tonnes of freight and carried 7.3 billion passengers.
Lower Than Last Year’s Package
In October 2024, the Cabinet had approved a similar 78-day bonus of Rs 2,029 crore for 11.72 lakh employees. This year’s approval involves a smaller workforce and reduced outlay, though the government maintains the payout will motivate staff for further efficiency gains.
Festive Season Economic Boost
The decision is expected to enhance consumer spending across urban and semi-urban markets, with higher disposable incomes likely driving sales of electronics, clothing, household items, and festive goods. Experts say the move could provide a consumption push during India’s peak shopping season.
Other Cabinet Approvals
Railways Minister Ashwini Vaishnaw said the Cabinet also cleared multiple projects across sectors, worth between Rs 4,000 crore and Rs 95,000 crore. Among them is the doubling of the Bakhtiyarpur–Rajgir–Tilaiya railway line in Bihar, a project aimed at boosting carrying capacity and easing freight movement.
