The Union Cabinet has approved a productivity-linked bonus equivalent to 78 days of wages for 11,40,770 eligible railway employees, involving a total payout of ₹2,009.61 crore before the Durga Puja and Dussehra holidays.
Railways Minister Ashwini Vaishnaw announced the decision after a Cabinet meeting chaired by Prime Minister Narendra Modi. According to the announcement reported by Aaj Tak Business, the payment is being made in recognition of the performance of railway staff during 2025-26.
The bonus, known as the Productivity Linked Bonus (PLB), is paid annually to eligible non-gazetted railway employees. The government said the payment is intended to act as an incentive for employees working towards improving railway performance.
Each eligible employee will receive an amount equivalent to 78 days of wages, capped at ₹17,951 for the calculation of the payment. The beneficiaries include track maintainers, locomotive pilots, train managers or guards, station masters, supervisors, technicians, technician helpers, pointsmen, ministerial staff and other Group C employees.
The scale of the payment reflects the size of Indian Railways’ operational workforce. More than 11.4 lakh employees are covered in this year’s approval, making the decision both a workforce measure and a significant annual public expenditure linked to the functioning of the national rail network.
The Productivity Linked Bonus is separate from regular salary and is tied to the government’s assessment of railway performance. The payment is traditionally released before the festive holiday period, when railway operations also face substantial passenger demand and heightened operational requirements.
The Cabinet decision comes as the railways continue to depend on a large workforce across track maintenance, train operations, station management, signalling support, technical services and administrative functions. The approved categories cover employees whose work directly supports the daily movement and safety of passenger and freight trains.
The government’s announcement did not provide a revised payment date beyond stating that the bonus would be paid before the Durga Puja and Dussehra holidays. It also did not specify any changes to the eligibility categories or the calculation formula for the 2025-26 payment.
