The Union Cabinet has approved a productivity-linked bonus equivalent to 78 days’ wages for approximately 11.4 lakh railway employees. The decision allocates over Rs 2,009 crore for the payout, with eligible employees receiving up to Rs 17,951 ahead of the festive season.
Rs 2,009 Crore Allocated for Railway Bonus
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a Productivity Linked Bonus (PLB) for non-gazetted railway employees for the financial year 2025-26. The bonus will cover approximately 11,40,770 employees across various categories of Indian Railways.
According to the government, the total financial outlay for the bonus stands at Rs 2,009.61 crore. The maximum amount payable to each eligible employee is Rs 17,951, equivalent to 78 days of wages.
The annual bonus recognises the contribution of railway personnel to the country’s transportation network and aims to encourage improved operational efficiency.
Which Railway Employees Will Benefit?
The bonus will benefit employees across several operational and administrative categories. These include track maintainers, loco pilots, train managers, station masters, supervisors, technicians, technician helpers, pointsmen, ministerial staff and other Group C personnel.
These employees perform essential duties that keep India’s extensive railway network operational. Their responsibilities range from maintaining railway tracks and operating trains to managing stations, supporting passengers and ensuring the smooth movement of freight.
The productivity-linked payment is intended to acknowledge their collective contribution to railway operations.
Bonus Comes Ahead of the Festive Season
Indian Railways traditionally pays the productivity-linked bonus before the Durga Puja and Dussehra holidays. The timing provides eligible employees with additional financial support during a period when household spending often increases.
For railway workers, the payment can help meet festive expenses, purchase essential goods and manage family budgets. The bonus also serves as an incentive for employees to maintain operational standards and improve service delivery.
The latest approval continues the government’s annual practice of providing this performance-linked benefit to eligible non-gazetted railway staff.
Indian Railways Reports Strong Operational Performance
The government’s decision comes after a strong performance by Indian Railways during 2025-26. The national transporter loaded a record 1,670 million tonnes of freight and carried nearly 7.41 billion passengers during the financial year.
These figures highlight the scale of railway operations and the importance of its workforce in supporting passenger mobility and freight transportation across the country.
The bonus announcement therefore combines financial recognition for employees with an acknowledgement of the railway network’s operational achievements.
Summary
The Union Cabinet has approved a 78-day productivity-linked bonus for 11.4 lakh railway employees, with a total expenditure of Rs 2,009.61 crore. Eligible non-gazetted staff can receive up to Rs 17,951. The payment covers several operational and administrative categories and recognises railway workers’ contributions following record freight loading and strong passenger traffic in 2025-26.
