Union Cabinet likely to take up productivity-linked bonus for railway employees on Wednesday

The Union Cabinet, led by Prime Minister Narendra Modi, is likely set to take up a proposal on productivity-linked bonus (PLB) for railway employees on Wednesday, sources in the know told ET.

The annual bonus is paid to eligible non-gazetted railway employees. The existing bonus amount is Rs 17,951, calculated on the basis of a wage ceiling of Rs 7,000 and 78 days of wages. The ceiling has remained unchanged since 2014-15.

Also read: 6.14% growth registered in freight loading in September 2026 over September 2025: Indian Railways


The Cabinet's consideration of the proposal does not, by itself, confirm approval of the bonus or the amount that employees may receive. Details of the proposal and the government's decision were not immediately available.

What railway employees currently get

The existing PLB calculation uses a wage ceiling of Rs 7,000 and a period of 78 days, resulting in a bonus of Rs 17,951 for non-gazetted railway employees.

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

The association has argued that the existing ceiling needs revision, pointing to a minimum wage of Rs 21,000 for unskilled workers. Based on a ceiling of Rs 18,000, it has recommended raising the annual bonus to at least Rs 46,184.

Also read: Want a government job after graduation? Indian Railways announces 3,548 NTPC vacancies with basic pay up to Rs 35,400

Railway Board warns against fake bonus letter

The development comes days after the Railway Board warned against a forged letter circulating on social media that purported to announce the sanction of a 78-day PLB for the 2025-26 financial year.

The fabricated letter, dated October 6, claimed that the government had approved a payment of Rs 41,149. In a communication to railway general managers dated October 7, the board said the document carried a forged signature and had not been issued by it.

The board directed railway offices not to act on the document or make payments based on it. It also advised officials and employees to verify bonus-related communications through the official Railway Board or Ministry of Railways websites.