Cabinet to approve Diwali bonus equal to 78 days' wages for railway staff: Sources

The Union Cabinet on October 6 is likely to announce a bonus for non-gazetted employees of the Indian Railways for the fiscal year 2020-21 which will be equivalent to 78 days' wages, sources aware of the development told Moneycontrol.

The Ministry of Railways has presented a proposal in front of the Union Cabinet for payment of productivity-linked bonus (PLB) equivalent to 78 days' wages for the financial year 2020-21 for all eligible non-gazetted railway employees which is expected to be approved by the Cabinet today, sources said.

In 2019-20, the Indian Railways had given its nearly 11.58 lakh non-gazetted employees a bonus of 78 days amounting to a total of Rs 2,081.68 crore.

Last year, the Indian Railways had set the wage calculation ceiling prescribed for payment of the bonus at Rs 7,000 per month. The maximum amount payable per eligible railway employee was set at Rs 17,951 for 78 days.

The productivity-linked bonus on the railways covers all non-gazetted railway employees (excluding RPF/RPSF personnel) who are spread over the entire country. Payment of PLB to eligible railway employees is made each year before the Dusshera/Puja holidays.