Cabinet approves 78 days productivity-linked bonus for rail employees

Ahmedabad: Finance Minister Arun Jaitley addresses a round table conference on Global Growth Through Indian Economy in Ahmedabad on Tuesday. PTI Photo(PTI5_23_2017_000170B)

Finance Minister Arun Jaitley said that the Union Cabinet gave the nod for a 78 days productivity-linked bonus for non-gazetted rail employees

The decision was taken up at a Cabinet meeting which was chaired by the Prime Minister Narendra Modi.

This does not include the Railway Protection Force (RPF) and The Railway Protection Special Force (RPSF) personnel.

He said that according to the existing formula the productivity-linked bonus was for 72 days.

"According to the formula, it was calculated to be given for 72 days but for the past six years it has been a tradition of giving them the bonus for 78 days, so the Cabinet has approved a 78-day productivity linked bonus for them," said Finance Minister Arun Jaitley.

About 12.30 lakh non-gazetted Railway employees are likely to benefit from the decision. This payment will be made before Dussehra/Puja holidays, a statement from the government said.

"The payment of PLB would serve as an incentive, and result in motivating a large number of Railway employees, particularly those involved in execution and operations of railways, to improve their productivity and ensure safety, speed and service for Railway customers," the statement said.

The financial implication of payment of 78 days' PLB to railway employees has been estimated to be Rs 2,245.45 crore.

The wage calculation ceiling prescribed for payment of PLB is Rs 7,000 per month. The maximum amount payable per eligible railway employee is Rs 17,951 for 78 days.