The Union Cabinet Friday sanctioned a performance-linked bonus (PLB) equivalent to 78 days wages for over 1.17 million Railway employees.

Railway and Information & Broadcasting Minister Ashwini Vaishnaw announced the decision which translates into a total financial outlay of Rs 2,028.57 crore and is aimed at providing a substantial boost to various categories of railway staff.

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The PLB will benefit various categories of non-gazetted Railway employees, including track maintainers, loco pilots, train managers, station masters, and other technical and ministerial staff.

This annual incentive is intended to foster ongoing improvements in railway performance, with a maximum payout of Rs 17,951 per employee.

Bonus is distributed prior to the Durga Puja and Dussehra festivities and has become a regular practice for Indian Railways. This year, it is expected to include around 1.17 million employees.

Announcing the bonus, Vaishnaw emphasised the impressive performance of the national transporter during the 2023-2024 period. He noted that the Indian Railways achieved a record cargo load of 1,588 million tonnes.

Ahead of the announcement, several Railway unions expressed dissatisfaction, launching a social media campaign on Thursday to demand bonuses based on the Seventh Pay Commission recommendations instead of the Sixth.

“We receive a productivity-linked bonus every year based on the minimum salary under the Sixth Pay Commission, which is unjust,” said Sarvjeet Singh, National General Secretary of IREF.