Cabinet approves Productivity linked bonus for Railway Employees

The Cabinet approved the payment of Productivity Linked Bonus (PLB) equivalent to 78 days wages for the financial year 2017-18 for all eligible non-gazetted Railway employees excluding RPF/RPSF personnel. About 11.91 lakh non-gazetted Railway employees are likely to benefit. The financial implication of payment of 78 days PLB to railway employees has been estimated to be Rs.2044.31 crore. The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is Rs.7000/- p.m. The maximum amount payable per eligible railway employee is Rs.17,951 for 78 days.

The bonus amount is likely to be around Rs 18,000. It will benefit around 12.26 lakh non-gazetted railway employees. The bonus will come as a relief to these employees who, along with other central government employees have been demanding a revision in the wages provided to them as per the recommendations of the 7th Pay Commission. The 78-day bonus will be announced next week as employees expect it during the festive season. It motivates the employees to improve the financial position of the public transporter.

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  • The Union Cabinet approved the payment of Productivity Linked Bonus.
  • About 11.91 lakh non-gazetted Railway employees are likely to benefit.
  • Railway employees have been estimated to be Rs.2044.31 crore.
  • The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is Rs.7000/- p.m.
  • The maximum amount payable per eligible railway employee is Rs.17,951 for 78 days.
  • The important role of the Railways as an infrastructural support in the performance of the economy as a whole.

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Background

Railways were the first departmental undertaking of the Government of India wherein the concept of PLB was introduced in the year 1979-80. The main consideration at that time was the important role of the Railways as an infrastructural support in the performance of the economy as a whole. In the overall context of Railway working, it was considered desirable to introduce the concept of PLB as against the concept of Bonus on the lines of ‘The Payment of Bonus Act – 1965’.

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