Union Cabinet Clears 78-Day Productivity-Linked Bonus of ₹2,009.61 Crore for Railway Employees

The Union Cabinet has approved a productivity-linked bonus of ₹2,009.61 crore for 11,40,770 railway employees. The payment covers 78 days and comes ahead of Diwali, Union Minister Ashwini Vaishnaw announced on Wednesday (October 14, 2026). 

According to news reports, eligible non-gazetted employees will receive the annual bonus, with the maximum payout set at ₹17,951 per person under the existing calculation. 

Staff Covered Under the Bonus 

The scheme covers employees across several railway departments. These include track maintainers, loco pilots, train managers, station masters, supervisors, technicians, pointsmen and ministerial staff, along with other Group C employees. 

The bonus is paid annually to eligible employees for their contribution to railway operations. The amount is calculated using a prescribed wage ceiling and a period of 78 days. 

Railway Records Passenger and Freight Figures 

Indian Railways carried nearly 7.41 billion passengers during the 2025-26 financial year and loaded a record 1,670 million tonnes of cargo, according to an official release. 

The figures cover passenger and freight traffic handled by the railway network during the year. 

Existing Wage Ceiling Remains Unchanged 

The productivity-linked bonus calculation uses a wage ceiling of ₹7,000. This results in a maximum payment of ₹17,951 for 78 days. The ceiling has remained unchanged since 2014-15. 

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

The association has pointed to the minimum wage of ₹21,000 for unskilled workers and recommended an annual bonus of at least ₹46,184 based on an ₹18,000 ceiling. 

Railway Board Issues Warning on Fake Letter 

Earlier, the Railway Board warned railway offices about a forged letter circulating on social media. Dated October 6, it claimed that a 78-day bonus of ₹41,149 had been approved for 2025-26. 

In a communication dated October 7, the board said the letter contained a forged signature and had not been issued by it. Officials were told not to process payments based on the document and to verify such communications through official railway websites. 

Read More: Delhi Government Introduces Mandatory Aadhaar Identification for Electricity Subsidy Claims! 

Conclusion 

The Cabinet's approval covers 11,40,770 employees, with a total payout of ₹2,009.61 crore. The existing ₹7,000 wage ceiling continues to determine the maximum bonus. 

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