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Government Approves ₹1,866 Crore Diwali Bonus for Railway Employees

Written by: Neha DubeyUpdated on: 24 Sept 2025, 10:18 pm IST
The Union Cabinet has approved a Productivity Linked Bonus (PLB) of ₹1,866 crore for 10.90 lakh railway employees this year.
Diwali Bonus for Railway Employees
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The government has approved a ₹1,866 crore Productivity Linked Bonus (PLB) for 10.90 lakh railway employees for the fiscal year 2024-25. Equivalent to 78 days’ wages, the bonus will be paid ahead of the festive season, rewarding employee performance and potentially boosting household spending across sectors like retail, electronics, and clothing.

PLB Payout Details for Railway Employees

In a move aimed at rewarding performance and stimulating consumer demand, the government has sanctioned a Productivity Linked Bonus of ₹1,866 crore for railway employees for the fiscal year 2024-25.

Around 10.90 lakh workers across various categories, including track maintainers, locomotive pilots, train guards, station masters, supervisors, technicians, and other Group ‘C’ staff, will benefit from this payout.

The bonus provides a maximum of ₹17,951 each, reflecting 78 days of wages. Historically, such payouts are made ahead of major festive seasons like Durga Puja and Dussehra, helping employees meet seasonal expenses.

Impact on Festival Spending and Retail

The government highlighted the strong performance of Indian Railways in 2024-25, with a record 1,614.90 million tonnes of cargo transported and nearly 7.3 billion passengers carried, underlining the workforce’s contribution. Beyond rewarding employees, the PLB is expected to boost retail sales across sectors such as electronics, clothing, and household goods. Increased disposable income in urban and semi-urban markets, combined with recent GST rate cuts, is likely to strengthen festival-season demand.

Read More: Uttar Pradesh Gets New Vande Bharat Express: Saharanpur to Lucknow.

Conclusion

The approval of the ₹1,866 crore Productivity Linked Bonus by the government marks a routine yet significant recognition of railway employees’ performance. While it provides a timely financial boost for workers ahead of the festive season, it also has the potential to support consumer spending in urban and semi-urban markets. The actual impact on retail and the economy will depend on the distribution and utilization of the bonus.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Sep 24, 2025, 4:47 PM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

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