04 Oct, 2013 08:09 AM

Cabinet approves 78 day wages as bonus for Railway

The Union Cabinet today approved the proposal of the Ministry of Railways for payment of Productivity Linked Bonus (PLB) equivalent to 78 days wages for the financial year 2012-13 for all eligible non-gazetted railway employees. Over 12.37 lakh non-gazetted railway employees will benefit from the decision of the Cabinet. Though there are a total of 13.26 lakh railway employees, 1.26 lakh are not covered under the bonus.

Productivity-linked bonus is paid to railway employees each year before the Dussehra festival. PLB equivalent to 78 days wages will be paid as a special case considering the good financial performances which is expected to motivate employees. Earlier there were talks of proposal of reducing the PL Bonus days stating “Capital Weightage and modified Staff Strength”. The AIRF had even issued a circular to the members asking to stop trains in case the number of days for the PLS is reduced.

The Gross Traffic Receipt (GTR) during 2012-13 is Rs. 1.24 lakh crore showing an increase of 18.85 per cent against GTR of Rs. 1.04 crore during 2011-12. This increase of GTR was 10.13 per cent during 2011-12 as against 2010-11 and 8.71 per cent during 2010-11 as against 2009-10.

The financial implication is estimated to be Rs. 1043.43 crore. The wage calculation ceiling prescribed for payment of PLB to eligible non-gazetted railway employees is Rs. 3500/- per month.

The Railways were the first departmental undertaking of the Government of India where the concept of PLB was introduced. The PLB Scheme for the Railways came into force from 1979-80 onwards and was evolved in consultation with the two recognized federations, that is the All India Railwaymen's Federation and National Federation of Indian Railwaymen. The scheme envisages a review every three years.