Railways announces a big Diwali gift: 78 days' bonus for 1.15 million employees..

Railway Diwali Bonus: Just ahead of the festive season, the Central Government has announced a major gift for approximately 11.5 lakh non-gazetted railway employees. The Union Cabinet has approved a 78-day Productivity-Linked Bonus (PLB) for railway staff. The government will spend a total of ₹2,009 crore on this Diwali bonus, bringing a celebratory atmosphere to lakhs of railway families.

Union Minister Ashwini Vaishnaw stated that this bonus will be transferred directly into the accounts of various Group-C and Group-D employees, including track maintainers, loco pilots, guards, station masters, and technicians. This bonus is awarded annually in recognition of the vital contribution these employees make toward keeping the railway network safe and operational.

A Substantial Bonus Following Record Performance

Each year, just before the festivals of Dussehra and Diwali, the government approves this 'Productivity-Linked Bonus' (PLB). Last year, in September 2023, the Cabinet approved ₹1,865.68 crore as a 78-day bonus for over 10.91 lakh railway employees, based on the railways' record-breaking performance—transporting 1,614.90 million tonnes of freight and carrying 7.3 billion passengers. In the preceding year, a bonus of ₹2,028.57 crore was distributed among approximately 11.72 lakh employees.

Who Benefits and How?

The Diwali bonus for railway employees is calculated based on a maximum monthly wage ceiling of ₹7,000—a figure that has remained unchanged since the 2014-15 fiscal year. Under this existing formula, each eligible employee will receive a maximum payout of ₹17,951 as part of the 78-day bonus. Due to this ceiling, even those employees whose basic salary exceeds ₹7,000 will have their bonus amount calculated based on this fixed limit.

Unions' Demands vs. Government's Stance

Railway employee unions have been consistently demanding an increase in this long-standing ₹7,000 limit used for bonus calculations. The unions argue that the bonus should be calculated based on the minimum basic pay for Level-1 employees (₹18,000) plus the Dearness Allowance (DA), rather than the ₹7,000 limit. This change would increase the bonus amount for 78 days to approximately ₹46,184. However, the government currently maintains the ₹7,000 ceiling, and there are no official indications of any changes to it. Once the Cabinet grants its approval, the Ministry of Railways will issue the necessary orders to ensure payments are completed before the festive season.

Recruitment Process for 1.65 Lakh New Posts Accelerated

There is also a significant update regarding employment within the Railways. The Minister stated that a major recruitment drive is underway in Indian Railways. Since 2014, approximately 5.5 lakh jobs have been provided in the Railways, and the recruitment process for 1.65 lakh new positions is currently progressing rapidly, creating large-scale employment opportunities for the nation's youth.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.