The Modi Cabinet has approved a 78-day Productivity Linked Bonus for non-gazetted railway employees, providing a Diwali-season benefit to more than 11 lakh staff members across Indian Railways.
The approved bonus covers 11,40,770 railway employees. The government has sanctioned ₹2,009.61 crore for the payment, while each eligible employee will receive ₹17,951 under the existing calculation method.
The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi. It comes before Durga Puja and Dussehra, when the additional payment is expected to provide financial support to covered employees during the festive period.
Who is covered by the bonus
The Productivity Linked Bonus applies to Group C and other non-gazetted railway staff. The covered categories include several operational, technical and administrative roles across the railway system.
They include track maintainers, loco pilots, train managers, station masters, supervisors, technicians, technician helpers, pointsmen and ministerial staff. The available details identify these groups as beneficiaries of the approved scheme.
The announcement does not state a separate payment date. It confirms the approval, the number of covered employees and the amount calculated for each eligible worker.
How the bonus is calculated
The current bonus calculation uses a minimum salary limit of ₹7,000. On that basis, the maximum amount for an eligible employee is ₹17,951 for 78 days.
The salary ceiling has become a point of concern among employee organisations. The limit has remained unchanged since 2014-15, according to the available report, even though the bonus calculation continues to use the same figure.
IRTSA and several other employee organisations have demanded that the calculation ceiling be raised from ₹7,000 to at least ₹18,000. If that demand is accepted, the reported bonus would rise from ₹17,951 to ₹46,184.
That higher amount is a demand rather than part of the approved Cabinet decision. The confirmed announcement remains based on the existing ₹7,000 calculation limit.
Railway performance cited by the Cabinet
The Cabinet linked the bonus to railway employees' performance during 2025-26. Indian Railways handled record freight of 1,670 million tonnes during the period and carried about 7.41 billion passengers to their destinations.
The bonus has been described as a reward for that performance. It is also intended to encourage employees to help improve railway operations further, according to the details provided with the decision.
For employees, the immediate confirmed benefit is the approved 78-day payment. For organisations seeking a larger payout, the unresolved issue is whether the calculation ceiling will be increased in the future.
Conclusion
The Cabinet has approved a 78-day Productivity Linked Bonus worth ₹17,951 for each eligible non-gazetted railway employee, covering 11,40,770 staff members at a total cost of ₹2,009.61 crore. The calculation limit remains ₹7,000, while employee organisations are seeking a higher ceiling.
Frequently Asked Questions
Q. Who will receive the railway bonus?
The bonus is for non-gazetted railway employees, including Group C staff and the listed operational, technical and ministerial categories.
Q. How many railway employees are covered?
The approved payment covers 11,40,770 employees, described in the report as more than 11 lakh staff members.
Q. How much will each eligible employee receive?
Each eligible employee will receive ₹17,951 under the current calculation based on a ₹7,000 salary limit.
Q. What is the duration of the approved bonus?
The Cabinet has approved a Productivity Linked Bonus covering 78 days.
Q. What is the government's total allocation?
The government has approved ₹2,009.61 crore for the bonus payment.
Q. Why are employee organisations asking for a change?
They want the ₹7,000 calculation ceiling, unchanged since 2014-15, to be raised to at least ₹18,000.
Q. What bonus amount has been mentioned under that demand?
The reported amount would increase from ₹17,951 to ₹46,184 if the requested ₹18,000 ceiling were accepted.
Q. What railway performance was cited?
For 2025-26, Indian Railways reported 1,670 million tonnes of freight and about 7.41 billion passengers carried.
