The Union Cabinet on Wednesday approved a productivity-linked bonus (PLB) equivalent to 78 days' wages worth ₹2,009.61 crore for 11.4 lakh eligible non-gazetted railway employees ahead of the festive season.
Payment of PLB to eligible railway employees is made each year before the Durga Puja/Dusshera holidays.
"This year also, PLB amount equivalent to 78 days' wages is being paid to about 11.40 lakh non-gazetted Railway employees. The payment of PLB acts as an incentive to motivate the railway employees to work towards improvement in the performance of the Railways," the government said.
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The Cabinet approved a productivity-linked bonus equal to 78 days’ wages for eligible non-gazetted railway employees. The total allocation is ₹2,009.61 crore.
The bonus is for eligible non-gazetted railway employees. The covered categories include loco pilots, track maintainers, station masters, train managers, technicians, supervisors, Pointsmen and other Group C staff.
The maximum approved payment is ₹17,951 per eligible employee for 78 days. The bonus is based on the existing formula.
The bonus is paid each year before the Durga Puja/Dussehra holidays. The Cabinet approved this year’s payment ahead of the festive season.
No. The ₹46,184 amount was recommended by an employee association as a higher bonus based on a proposed wage-ceiling increase; it is not the approved payout. The current maximum is ₹17,951.
It added, "The maximum amount payable per eligible railway employee is ₹17,951 for 78 days."
The maximum bonus payable to an eligible employee is ₹17,951. The bonus covers employees across categories, including loco pilots, track maintainers, station masters, train managers, technicians, supervisors, Pointsmen, Ministerial staff, and other Group 'C' staff.
The government said the Railways recorded cargo loading of 1,670 million tonnes and carried nearly 7.41 billion passengers in 2025-26.
"The performance of Railways in the year 2025-26 was very good. Railways loaded a record cargo of 1670 million tonnes and carried nearly 7.41 billion Passengers," the government said.
The Union Cabinet has approved a performance-linked bonus worth ₹2,009 crore for more than 11 lakh railway employees ahead of the festive season. It has also cleared an extension of social security benefits for vulnerable groups until 2031, with an allocation of ₹53,000 crore, and given the go-ahead for the strategic restructuring of IDBI Bank to strengthen its support for micro, small and medium enterprises (MSMEs).
Bonus for over 11 lakh railway employees
The bonus is aimed at acknowledging the contribution of railway employees to the operation of India's extensive rail network, which is vital for passenger travel and freight transportation.
With the festive season approaching, the government has set aside ₹2,009 crore for the performance-linked payment, which will benefit more than 11 lakh employees.
Social security coverage extended until 2031
In a separate decision, the Cabinet approved the continuation and expansion of the social security net for vulnerable sections of society until 2031, with a total allocation of ₹53,000 crore.
The move is expected to increase the number of beneficiaries to 3.2 crore. Senior citizens, widows and persons with disabilities are among the groups expected to benefit from the expanded coverage, providing them with greater financial support.
IDBI Bank restructuring to support MSMEs
The Cabinet also cleared the strategic restructuring of IDBI Bank, a move expected to strengthen the bank's role in providing support to micro, small and medium enterprises.
MSMEs are an important part of India's economy, contributing significantly to employment, manufacturing and the services sector.
Maharashtra announces ₹5,000 aid for drought-hit farmers
Meanwhile, Maharashtra Chief Minister Devendra Fadnavis has announced advance financial assistance of ₹5,000 for drought-affected farmers ahead of Diwali. Around 1.25 crore farmers are expected to benefit from the initiative, ANI reported.
The proposed assistance is estimated to cost the state government approximately ₹6,000 crore. The measure is being described as a first for Maharashtra, with the government aiming to provide relief to farmers earlier than it has in previous years.
Fadnavis also announced that the number of talukas classified as drought-affected has increased from 265 to 305. Of the state's 358 talukas, 305 will now be covered under the expanded drought-related measures.
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