78-Day Bonus: Railway Unions Demand Calculation Based on ₹18,000 Basic Pay

Railway unions have raised a major demand ahead of the festive season. They are calling for an increase in the Dussehra bonus and are pressing for the calculation to be based on a basic salary of ₹18,000.

The Indian Railway Technical Supervisors Association (IRTSA) has written to the Finance Minister and the Railway Minister, demanding an upward revision of the wage ceiling for the Productivity Linked Bonus (PLB) applicable to non-gazetted railway employees. They argue that the basis for calculating the Dussehra bonus should be raised to a minimum of ₹18,000 plus Dearness Allowance (DA).

New Demand by Unions

The unions argue that the current 78-day bonus is determined based on a ceiling of ₹7,000, which was fixed during the 6th Pay Commission era (FY 2014-15). Consequently, non-gazetted railway employees receive a maximum bonus of only ₹17,951. Now that the minimum basic salary under the 7th Pay Commission has risen to ₹18,000, the bonus ceiling for Level-1 employees should also be raised to at least ₹18,000 plus 60% DA.

The association also demands that the bonus ceiling be further increased in proportion to the salaries of employees at Level-2 and above. Railway unions question why the bonus calculation should still be based on the old ₹7,000 figure when the minimum wage has increased to ₹18,000 following the implementation of the 7th Pay Commission.

How ​​Much Will Railway Employees Benefit?

If this demand is accepted during the Union Cabinet meeting prior to Dussehra, railway employees stand to gain significantly. Even if the government calculates the 78-day bonus based solely on a basic pay of ₹18,000—excluding the 60% Dearness Allowance (DA)—the amount would exceed ₹46,159. If the DA is also factored in, the figure could reach ₹27,824. Currently, all eyes are on the Cabinet’s decision.

This demand from IRTSA comes at a time when the National Council-Joint Consultative Machinery (NC-JCM)—the primary body representing central government employees—has sought an upward revision of the PLB wage ceiling for all non-gazetted employees. Last month, the NC-JCM requested the government to raise the wage ceiling from ₹7,000 to ₹21,000.