Cabinet approves ₹1,865.68 cr productivity-linked bonus for railway staff

The Cabinet approved a ₹1,865.68 crore productivity-linked bonus for 1.09 million railway employees, with a maximum of ₹17,951 per person, ahead of the festive season

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the payment of a productivity-linked bonus (PLB) for railway employees in recognition of their performance. A total of ₹1,865.68 crore will be disbursed to 1.09 million staff members, the Ministry of Railways said in a press statement.

 

Productivity-linked bonus (PLB) is paid annually before the Durga Puja and Dussehra holidays. Eligible non-gazetted railway employees will receive an amount equivalent to 78 days’ wages. “The payment of PLB acts as an incentive to motivate the railway employees for working towards improvement in the performance of the railways,” the ministry said.

 

The maximum PLB payable to each eligible employee is ₹17,951. The bonus covers various categories of railway staff, including track maintainers, loco pilots, train managers (guard), station masters, supervisors, technicians, technician helpers, pointsmen, ministerial staff, and other Group-C employees.

 

In 2024-25, Indian Railways recorded a cargo loading of 1,614.90 million tonnes and carried nearly 7.3 billion passengers, the ministry said. Last year, the Cabinet had approved ₹2,028.57 crore as PLB for 1.17 million railway staff.

Measures to boost consumption

The PLB comes shortly after the Centre implemented new Goods and Services Tax (GST) rates of 5 and 18 per cent, which took effect on September 22.

 

Earlier this year, the Centre also eased the income tax burden under the new regime, introducing nil tax for households with an annual income of up to ₹12 lakh.

 

In an open letter to citizens earlier this week, PM Modi stated that the income tax cuts and the next generation GST reforms are expected to generate savings of nearly ₹2.5 trillion for the public. He encouraged citizens to celebrate the ‘GST Savings Festival’ during the festival season by buying and selling swadeshi products, which he said would help many families earn their living and create job opportunities for the youth. 

All these measures are expected to support consumer spending and boost consumption.