Union Cabinet Likely to Consider Productivity Bonus for Railway Employees

The Union Cabinet is likely to consider the Productivity-Linked Bonus (PLB) for railway employees on Wednesday (October 14, 2026), according to The Economic Times news report. 

The annual payment is made to eligible non-gazetted employees of Indian Railways. The amount under consideration and details of the proposal were not immediately available.  

Existing Bonus Amount 

Railway employees currently receive a PLB of ₹17,951, calculated on a wage ceiling of ₹7,000 and 78 days of wages. The wage ceiling has remained unchanged since the 2014-15 financial year. 

The amount payable depends on the existing calculation method. Any change to the wage ceiling could affect the bonus, but no revision has been confirmed by the government. 

Association Seeks Higher Ceiling 

The Indian Railways Technical Supervisors’ Association (IRTSA) has requested a higher wage ceiling for calculating the annual bonus. It has proposed a ceiling of ₹18,000 plus dearness allowance (DA) for employees in Level-2 and above, with the amount calculated in proportion to their pay levels. 

The association has cited the minimum wage of ₹21,000 for unskilled workers in support of its demand. Based on a wage ceiling of ₹18,000, it has recommended a bonus of at least ₹46,184. 

The proposed figures reflect the association’s demand and do not represent an approved change to the current bonus structure. 

Railway Board Issues Warning 

The Cabinet proposal comes days after the Railway Board issued a warning about a forged letter circulating on social media. Dated October 6, the letter claimed that a 78-day PLB of ₹41,149 had been approved for the 2025-26 financial year. 

In a communication dated October 7, 2026, to railway general managers, the board said the letter had not been issued by it and carried a forged signature. It directed railway offices not to act on the document or make payments based on it. 

The board also advised officials and employees to check bonus-related announcements on the official Railway Board or Ministry of Railways websites. 

Read More: SEBI Revises PMS Rules, Introduces Common Advertising Code! 

Conclusion 

The Cabinet’s consideration of the proposal is the next step in the bonus process. The final payout and any revision to the wage ceiling remain unconfirmed. 

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