Cabinet approves payment of 78 days’ wages as productivity-linked bonus for railway employees

The union cabinet today gave its approval for payment of productivity-linked bonus (PLB) equivalent to 78 days wages to eligible non-gazetted railway employees (excluding RPF/RPSF personnel) for the financial year 2015-16.

The Indian Railways will pay out the PLB for 78 days' wages with a calculation ceiling of Rs7,000 per month. This is the fifth consecutive year when the PLB is paid for 78 days' wages.

The approval entails a financial implication of approximately Rs2090.96 crore payment to more than 1.23 million non-gazetted railway employees, a railway ministry release stated.

Payment of PLB would result in motivating a large number of railway employees to improve the performance of the Railways and enhance the productivity levels further besides maintaining industrial peace, the release noted.

The payment of bonus to eligible railway employees will be made before Dussehra/Puja holidays, it added.

PLB is traditionally paid before Dussehra. Eligible employees would be entitled to more than Rs 18,000 under the approved 78 days' wage PLB for 2015-16.

Last year, PLB was paid to nearly 1.26 million employees with wage calculation ceiling of Rs3,500 per month, which amounted to a total pay out of Rs1,030.02 crore.

Commenting on the Union Cabinet's decision, the All India Railwaymen's Federation (AIRF) said: "Dear Comrades, hearty congratulations! Union Cabinet has today approved 78-day PLB to Railwaymen for the year 2015-16 at the enhanced ceiling of Rs.7,000 p.m. This is another great achievement of AIRF."

Railway's PLB scheme came into effect from 1979-80 onwards. It was evolved in consultation with the two recognised federations -- the AIRF and National Federation of Indian Railwaymen. The scheme is subject to review every three years.