Cabinet approves 78-day bonus worth Rs 2,009 crore for 11.4 lakh railway employees ahead of Diwali

The Union Cabinet led by Prime Minister Narendra Modi on Wednesday approved a 78-day bonus worth Rs 2,009.61 crore for 11,40,770 employees of the Indian Railways.

Union minister Ashwini Vaishnaw announced the decision, describing the payout as a Diwali gift for the beneficiaries.

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ET had reported earlier this morning, citing people in the know, that the Union Cabinet was likely to take up a proposal on productivity-linked bonus (PLB) for railway employees.

The annual bonus is paid to eligible non-gazetted railway employees, with the maximum payout set at Rs 17,951 per person. The payment is intended to recognise employees' contribution to railway operations and incentivise them to improve performance.

The bonus covers several categories of railway staff, including track maintainers, loco pilots, train managers, station masters, supervisors, technicians, pointsmen, ministerial staff and other Group C employees.

The government’s decision comes after the Railways recorded a strong operational performance in 2025-26, carrying nearly 7.41 billion passengers and loading a record 1,670 million tonnes of cargo, according to an official release.

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 maximum bonus of Rs 17,951 for eligible non-gazetted railway employees. The ceiling has remained unchanged since 2014-15.

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.

Railway Board warns against fake bonus letter

The decision 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.