Cabinet clears 78-day, Rs 1,865 crore productivity bonus for 10.9 lakh railway staff
Published on 24/09/2025 03:43 PM
The Union Cabinet on Wednesday, September 24, approved a Productivity Linked Bonus (PLB) equivalent to 78 days' wages for railway employees, in a move expected to benefit nearly 10.91 lakh non-gazetted staff. The announcement made through a Ministry of Railways release, involves a financial outlay of Rs 1,865.68 crore and comes ahead of Durga Puja, Dussehra and Diwali.
Payment of PLB has become an annual exercise before the festive season, recognising the contribution of railway staff to operational efficiency. The maximum amount payable per employee this year is Rs 17,951.
Beneficiaries include track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, helpers, pointsmen, ministerial staff and other Group C employees, according to the government's notification.
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Officials said the payout reflects the Railways' strong performance in FY 2024-25, when it moved a record 1,614.90 million tonnes of freight and carried nearly 7.3 billion passengers. The government said the bonus is both a reward and an incentive for further efficiency gains.
In October 2024, the Cabinet had cleared a similar 78-day PLB of Rs 2,029 crore covering 11.72 lakh employees. This year's approval involves a smaller workforce and a lower outlay.
The decision is also likely to lift household spending during the festive season, with railway employees forming one of the largest consumer groups in semi-urban and urban markets. Higher disposable incomes typically translate into stronger sales of electronics, clothing, and festive essentials.
Railways Minister Ashwini Vaishnaw said the Cabinet also cleared projects worth Rs 4,000-95,000 crore across sectors. These include the doubling of the Bakhtiyarpur–Rajgir–Tilaiya line in Bihar, which is expected to significantly expand carrying capacity.
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