Railways Federation demand revision in bonus calculations under 7th CPC

The Indian Railways Employee Federation (IREF) has reached out to Union Minister Ashwini Vaishnaw, urging that their annual productivity-linked bonus (PLB) be calculated based on the Seventh Pay Commission rather than the Sixth.

In the letter, Sarvjeet Singh, National General Secretary of the IREF, highlighted that the current PLB is based on the minimum salary of Rs 7,000 per month from the Sixth Pay Commission. He pointed out that under the Seventh Pay Commission, the minimum salary is Rs 18,000, which railway employees have been receiving since January 1, 2016.

“Calculating the PLB using the Rs 7,000 minimum salary is a clear injustice and an exploitation of railway employees,” Singh stated.

Many IREF members noted that during the nationwide lockdowns prompted by the Covid pandemic, while the public was hesitant to leave their homes, railway employees ensured the trains continued to operate, resulting in a significant increase in railway earnings, as reflected in the quarterly reports.

IREF emphasized that government guidelines dictate that railway employees should receive a PLB equivalent to 78 days’ salary. However, the current payment amounts to Rs 17,951 based on a monthly salary of Rs 7,000, which does not reflect the actual earnings of any railway employee.

“The minimum basic monthly salary in the railways is Rs 18,000. Therefore, the 78-day bonus of Rs 17,951 is less than the minimum salary, raising concerns in the market. Based on the correct minimum salary of Rs 18,000, the 78-day bonus should be Rs 46,159,” Singh explained.

In closing, he requested, “The Indian Railway Employees Federation urges you to calculate the productivity-linked bonus for all railway employees according to the pay scales of the Seventh Pay Commission, enabling them to celebrate the upcoming festival with joy and continue their vital contributions to the operations and maintenance of the railways.”