Railway employees may get productivity-linked bonus: How much can they expect this festive season?
The Union Cabinet, led by Prime Minister Narendra Modi, is expected to consider a proposal on the productivity-linked bonus (PLB) for railway employees on Wednesday, 14 October, raising hopes of an annual festive-season payout for eligible staff.
The existing bonus for eligible non-gazetted railway employees is ₹17,951, calculated based on a wage ceiling of ₹7,000 and 78 days' wages. The wage ceiling has remained unchanged since 2014-15, even as employee associations have demanded a revision to increase the payout, according to The Economic Times.
However, the Cabinet’s consideration of the proposal does not mean the bonus has been approved. The government has not announced the final payout or the details of its decision.
How much bonus can railway employees expect?
Under the existing formula, eligible non-gazetted railway employees receive a maximum bonus of ₹17,951 for 78 days. The amount is based on a wage ceiling of ₹7,000.
The Indian Railways Technical Supervisors’ Association (IRTSA) has sought an increase in the ceiling to ₹18,000 plus dearness allowance (DA) for Level-2 employees and above, with proportionate increases for higher pay levels.
The association has argued that the current ceiling needs to be revised, pointing to a minimum wage of ₹21,000 for unskilled workers. Based on a wage ceiling of ₹18,000, it has recommended raising the annual bonus to at least ₹46,184. This is a demand by the association, not an approved payout.
Railway Board warns against fake bonus letter
The development comes days after a forged letter started circulating on social media that the government has approved a 78-day productivity-linked bonus for the 2025-26 financial year. The Railway Board has already warned employees against it
The letter, dated 6 October, claims that employees would receive ₹41,149.
Later on 7 October, the Railway Board clarified that the document is fake and carries a forged signature.
The board directed railway offices not to act on the letter or make payments based on it. It also advised employees and officials to verify bonus-related announcements only through the official Railway Board or Ministry of Railways websites.