Union Cabinet approves Rs 2,028 cr bonus for 1.17 million Railway staff

The Union Cabinet has sanctioned Rs 2,028 crore performance-linked bonus for 1.17 million Railway employees, but unions push back, calling for an update to align with modern pay structures

The Union Cabinet has sanctioned a performance-linked bonus (PLB) equivalent to 78 days wages for over 1.17 million Railway employees. This decision, announced by Railway and Information & Broadcasting Minister Ashwini Vaishnaw, translates into a total financial outlay of Rs 2,028.57 crore and is aimed at providing a substantial boost to various categories of railway staff.

Financial incentive for Railway staff

The PLB will benefit various categories of non-gazetted Railway employees, including track maintainers, loco pilots, train managers, station masters, and other technical and ministerial staff. This annual incentive is intended to foster ongoing improvements in railway performance, with a maximum payout of Rs 17,951 per employee.

Traditionally, this bonus is distributed prior to the Durga Puja and Dussehra festivities and has become a regular practice for Indian Railways. This year, it is expected to include around 1.17 million employees.

Unions express discontent

Prior to the official announcement, several Railway unions voiced their discontent, initiating a social media campaign to advocate for bonuses that align with the recommendations of the Seventh Pay Commission, rather than the Sixth Pay Commission. 

Prominent unions, such as the Indian Railway Employees Federation (IREF), and the Indian Railway Signal & Telecommunication Maintainers Union (IRSTMU), raised concerns about the methodology used in calculating the bonus, arguing that it fails to reflect current salary structures.

The IREF had previously reached out to Railway Minister Ashwini Vaishnaw two weeks ago, requesting a revision of the bonus structure, but has not yet received a reply. Consequently, unions have intensified their campaign on X (formerly Twitter), seeking to urge the government to address their concerns.
 

While announcing the bonus, Vaishnaw emphasised the impressive performance of the national transporter during the 2023-2024 period. He noted that the Indian Railways achieved a record cargo load of 1,588 million tonnes.

(With agency inputs)