Home / News / India /  Good news for railway employees! Cabinet decision on bonus likely today

PM Narendra Modi-led Union Cabinet would take up a proposal to give productivity linked bonus to railway employees today, CNBC-TV18 reported. Apart from bringing cheers to lakh of employees ahead of festival season, this would motivate the employees for working towards improving the performance of the Railways.

The Productivity Linked Bonus on Railway covers all non-gazetted railway employees (excluding RPF/RPSF personnel) who are spread over the entire country.

About 11.56 lakh non-gazetted Railway employees are likely to benefit from the decision. Payment of PLB to eligible railway employees is made each year before the Dusshera/ Puja holidays. The decision of the Cabinet shall be implemented before the holidays for this year as well.

In 2021 too, the Union Cabinet had approved the Productivity Linked Bonus (PLB) equivalent to 78 days' wages for the financial year 2020-21 for all eligible non-gazetted Railway employees (excluding RPF/RPSF personnel). The financial implication of payment of 78 days' PLB to railway employees was estimated to be 1984.73 crore. The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees was Rs7000/- p.m. The maximum amount payable per eligible railway employee was Rs. 17,951 for 78 days.

Railways were the first departmental undertaking of the Government of India wherein the concept of PLB was introduced in the year 1979-80. The main consideration at that time was the important role of the Railways as an infrastructural support in the performance of the economy as a whole. In the overall context of Railway working, it was considered desirable to introduce the concept of PLB as against the concept of Bonus on the lines of 'The Payment of Bonus Act -1965'. Even though the Payment of Bonus Act does not apply to the Railways, yet the broad principles contained in that Act were kept in view for the purpose of determining the "Wage/Pay Ceiling", definition of 'Salary'/'Wage', etc. The PLB Scheme for the Railways came into force from the year 1979-80 and was evolved in consultation with the two recognized Federations namely, All India Railwaymen's Federation and National Federation of Indian Railwaymen and with the approval of the Cabinet. The scheme envisages a review every three years.

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