Centre approves 78 days wage as bonus to Railway employees ahead of Dussehra

The Productivity Linked Bonus (PLB) equivalent to 78 days of wages will be paid to non-gazetted railway employees, excluding RPF/RPSF personnel, for the financial year 2021-22.

According to available data, about 11.27 lakh non-gazetted Railway employees are likely to benefit from the decision.

“Incentives to increase productivity & efficiency of Railways! Hon’ble PM @narendramodi approves productivity linked bonus equivalent to 78 days wages for 11.27 lakh eligible non-gazetted Railway employees. #ShramevJayate”, the Ministry of Railway posted on micro-blogging site Twitter. 

Railway Minister Ashwini Vaishnav said that where wages exceed Rs7000 for the employees, the bonus would be calculated at ₹7000 per month. It has also been informed that the bonuses will be paid before Dussehra holidays begin. 

“The President is pleased to sanction Productivity Linked Bonus (PLB) equivalent to 78 (Seventy Eight) days wages without any ceiling on wages for eligibility for the financial year 2021-22 to all eligible non-gazetted Railway employees (excluding all RPF/RPSF personnel). Where, wages exceed 7000/- per month, Productivity Linked Bonus will be calculated as if the ‘wages’ are 7000/- p.m.” the circular read. 

The circular by the Ministry of Railways further hailed the Railway employees. It mentioned that the employees have been instrumental to the growth of the sector, wherein they have ensured uninterrupted movement of essential commodities like food, fertilizer, coal and other items even during the lockdown period. 

The circular said that Railway employees have played important role in the performance of Passenger and Goods services which also acted as catalysts for the economy. Railways has ensured there is no shortage of such commodities in the area of operations, said the Ministry statement.

Railways said in the past three years, it has undertaken a series of steps to regain market share in freight and increase realization in passenger fares through suitable policy initiatives. As a result, in the current year (2022-23), Railways have regained momentum in receipts, disrupted previously due to the pandemic.

In FY 2021-22, Railways achieved incremental freight loading of 184 million tonnes which is the highest ever. The payment of PLB would serve as an incentive and result in motivating a large number of Railways employees, particularly those involved in the execution and operations of railways, to improve their productivity and ensure safety, speed and service for Railway customers. 

The payment of PLB will also boost the demand in the economy in the upcoming festival season. The financial implication of payment of 78 days’ PLB to railway employees has been estimated to be ₹1,832.09 crore. The wage calculation ceiling prescribed for payment of PLB is ₹7,000 per month. The maximum amount payable per eligible railway employee is ₹17,951 for 78 days.