Cabinet Approves 78-Day Productivity Bonus for 11.4 Lakh Railway Employees

The Union Cabinet on Wednesday approved a productivity-linked bonus (PLB) equivalent to 78 days’ wages for around 11.4 lakh railway employees ahead of the festive season. Each eligible employee will receive a maximum bonus of Rs 17,951, with the total expenditure estimated at Rs 2,009.61 crore.

According to the government, the decision will benefit 11,40,770 non-gazetted railway employees across various categories. These include track maintainers, locomotive pilots, train managers, station masters, supervisors, technicians, pointsmen and ministerial staff, among other Group C employees.

The bonus is an annual payment made ahead of Durga Puja and Dussehra. It recognises employees’ contribution to railway operations and aims to encourage greater efficiency and productivity across the network.

The government’s announcement comes after Indian Railways reported strong operational performance during the financial year 2025-26. The national transporter carried a record 1,670 million tonnes of freight and nearly 7.41 billion passengers during the year, according to the government.

Passenger and Freight Traffic Record Growth

Indian Railways recorded an increase in both passenger and freight traffic in August 2026, reflecting continued demand for rail transport.

Passenger traffic stood at 67.27 crore in August 2026, compared with 64.43 crore during the corresponding month in 2025. Suburban passenger traffic registered a year-on-year growth of 9.02 per cent, rising to 38.01 crore passengers from 34.89 crore in August last year.

Freight operations also showed an improvement. Indian Railways loaded 137.9 million tonnes of freight in August 2026, compared with 130.9 million tonnes in the same month of the previous year, recording a growth of 5.4 per cent.

The bonus approval comes amid these reported operational gains and will provide additional financial support to eligible railway employees during the festive period. The annual productivity-linked payment remains an important component of the Railways’ employee incentive system, linking staff recognition with the organisation’s operational performance.