The proposal was cleared by the Union Cabinet on Wednesday, on the eve of the festival season. The decision will benefit 12.58 lakh non-gazetted railway employees. The maximum amount an eligible non-gazetted employee will get is Rs 8,975 because the prescribed wage calculation ceiling for an eligible non-gazetted employee is Rs 3,500 per month. The burden on the public exchequer will be around Rs 1,030.02 crore for the year.

The bonus is paid to the employees every year before the Dussehra festival.

It is learnt that since the process for elections are on in parts of the country, the Election Commission's permission may become mandatory as the code of conduct is in force.

General Secreatry of National Railway Federation of Indian Railwaymen M Raghavaiah has reportedly said that they may demand a raise in the ceiling on the payment.

Previous Years' Payments

The Railways had proposed to give 78 days wages as productivity-linked bonus. The burden on the railways is estimated to be Rs 1,030.02 crore for the year.

Bonus amounting to 78 days wages was also paid for the fiscal years 2010-11, 2011-12, 2012-13 and 2013-14.

The salient features of the PLB scheme as approved by the Cabinet are:–

(a) The output for a year is reckoned by the equated net tonne kilometres by adding together:-

(i) total goods revenue net tonne kilometres.

(ii) non-suburban passenger kilometres converted by a factor of 0.076.

(iii) suburban passenger kilometres converted by a factor of 0.053.

(b) The input is taken as the non-gazetted staff strength (excluding RPF/RPSF personnel), increased by the incremental increase/decrease in capital (over average of last three years) during the year. Incremental capital is confined to Rolling Stock utilised for movement of trains. The relative weights given are 0.50 for Tractive Effort, 0.20 for Wagon Capacity and 0.30 for Seating Capacity. The labour input i.e. non-gazetted staff strength is then increased to the extent of the percentage increase in the incremental capital.

Highest PLB amount of 78 days’ wages was paid for the financial years 2010-11, 2011-12, 2012-13 and 2013-14. This year also PLB equivalent to 78 days’ wages will be paid considering the good financial performance which is expected to motivate employees for working towards improving the same in future.

The financial implication of payment of 78 days’ PLB to railway employees has been estimated to be Rs. 1030.02 crore. The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is 3500/- pm. The maximum amount payable per eligible railway employee is Rs. 8975 for 78 days.

About 12.58 lakh non-gazetted Railway employees are likely to benefit from the decision.

The Productivity Linked Bonus on Railway covers all non-gazetted railway employees (excluding RPF/RPSF personnel) who are spread over the entire country.