The Ministry may provide Indian Railways employees with significant news during the festive period. According to sources, the government is considering approving a performance-linked bonus (PLB) as a festive gift for railway workers.
If this decision is taken, more than 10 million employees will benefit. Employees have been informed that the central cabinet of ministers may approve the payment of a performance-oriented or annual bonus for railway workers for the financial year 2025-26 in the middle of the festive season.
Earlier, in September, the central cabinet of ministers, chaired by Prime Minister Narendra Modi, approved a payment of ₹1.86568 crore in the form of PLB for 78 days for 10,91,146 railway employees.
Typically, railway workers receive a performance-linked bonus before the Durga Puja or Dasara holidays. This bonus is equivalent to 78 days of salary and is intended for approximately 10.91 lakh employees. The maximum PLB amount for each eligible railway worker is ₹17,951, equivalent to 78 days of salary.
Currently, the annual bonus is calculated based on a salary threshold of ₹7,000 and a period of 78 days. The Indian Railwaymen's Service Association (IRSTA) has approached the central government requesting an increase in this threshold to ₹18,000 and the provision of Dearness Allowance (DA) in line with high salary levels for second-level employees or above.
IRSTA sent a letter to Finance Minister Nirmala Sitharaman and Transport Minister Ashwini Vaishnaw, arguing that the monthly salary limit of ₹7,000 for non-gazetted railway employees, set in 2016, is unrealistic and does not align with the 7th Central Pay Commission (7th CPC) and subsequent DA increases.
If the government decides to consider the association's demands and raise the salary limit for PLB from ₹7,000 to ₹18,000, railway workers will receive an even larger bonus. Calculating the PLB based on the current minimum basic salary of ₹18,000 for 78 days, the PLB amount would be ₹46,184 (calculation: ₹18,000 x 78 days / 30.4 average days per month).
The performance-linked bonus from Indian Railways will be distributed across various personnel categories. Recipients of the bonus include track maintenance staff, train drivers, train managers (conductors), station masters, supervisors, technicians, assistant technicians, punctuality officers, administrative staff, and other Group 'C' employees of Indian Railways.


