Cabinet okays Rs 1,866-cr productivity-linked bonus as early Diwali gift for railway employees

The bonus will be made to non-gazetted railway employees across various categories of workers.

The Union Cabinet on September 24 approved a productivity-linked bonus worth Rs 1,866 crore for Railway employees, benefiting over 1 million employees, Union minister Ashwini Vaishnaw said.

Vaishnaw said the move recognises the "excellent performance" of railway workers and the bonus ensures payment of 78 days to 10,91,146 non-gazetted railway employees.

The development comes just a few days ahead of Diwali and elections in Bihar, which is likely to take place in November.

Railways provide productivity-linked bonus to its eligible employee each yead ahead of Durga Puja and Dussehra holidays to incentivise the workers to improve their performance further, a statement said.

What is the maximum eligible amount for Railway workers?

Under the bonus scheme, the maximum payable amount equivalent to 78 days of wages for each eligible railway employee is Rs 17,951, the government said.

Who is eligible for the bonus payment?

The bonus will be made to non-gazetted railway employees across various categories of workers. This includes- track maintainers, loco pilots, train managers (guard), station masters, supervisors, technicians, technician helpers, pointsman, ministerial staff and other Group ‘C’ staff.

The Railways registered a good performance in 2024-25 with loaded cargo hitting 1614.9 million tonnes and carried almost 730 crore passengers.

Other announcements 

The Cabinet also approved doubling of Bakhtiyarpur - Rajgir - Tilaiya single railway line section (104 Km) in Bihar with total cost of Rs. 2,192 crore The project covering four Districts in the state of Bihar will increase the existing network of Indian Railways by about 104 Kms.

The Project section also provides rail connectivity to prominent destinations such as Rajgir (Shanti Stupa), Nalanda, Pawapuri etc. attracting pilgrims and tourists from across the country. Multi-tracking projects will enhance connectivity to approximately 1,434 villages and about 13.46 lakh population and two Aspirational Districts (Gaya and Nawada).

The Cabinet also approved, construction of 4-lane Sahebganj-Areraj-Bettiah section of the NH-139W in Bihar on Hybrid Annuity Mode with a total project length of 78.942 km worth Rs. 3,822.31 crore.

With agency inputs