Railway Employees Bonus: Cabinet May Consider Productivity-Linked Bonus Proposal

The Union Cabinet may consider a proposal concerning productivity-linked bonus (PLB) for eligible non-gazetted railway employees. The proposal comes amid demands from employee associations to revise the wage ceiling used to calculate the annual bonus.

The Union Cabinet, led by Prime Minister Narendra Modi, is likely to take up the proposal in this regard soon, according to a report in the Economic Times. Details of the proposal and the government’s decision are yet to be finalised. The Cabinet taking up the proposal would not necessarily mean that a bonus revision has been approved or that the amount payable to railway employees has been finalised.

What Railway Employees Currently Get

Eligible non-gazetted railway employees currently receive a bonus of Rs 17,951, calculated using a wage ceiling of Rs 7,000 and 78 days of wages. The ceiling has remained unchanged since 2014-15.

The wage ceiling is the maximum salary considered for calculating the bonus, rather than the employee’s actual salary. The bonus is paid to various categories of railway staff, including track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, technician helpers, pointsmen, ministerial staff and other Group C employees.

What Railway Employees Are Demanding

The Indian Railways Technical Supervisors’ Association (IRTSA) has sought an increase in the wage ceiling to Rs 18,000 plus dearness allowance (DA) for Level-2 employees and above, with proportionate adjustments for higher pay levels.

The association has argued that the existing ceiling needs revision, citing a minimum wage of Rs 21,000 for unskilled workers. Based on its proposed Rs 18,000 ceiling, it has also recommended an annual bonus of at least Rs 46,184. This is the association’s demand, though, not a confirmed payout.

Separately, the Railway Board said a letter dated October 6, 2026, bearing reference number RBE No. 101/2026, was issued under a forged signature. The letter falsely claimed approval of a 78-day bonus worth Rs 41,149 for 2025-26. In its communication to railway general managers and other concerned officials, the Board said neither the claimed approval nor the payment amount had been authorised. It directed zonal railways, production units and other offices to disregard the letter and take no action based on it.