Ahead of Diwali, the Cabinet approves a productivity-linked bonus for railroad employees

The union cabinet has given the go-ahead for a productivity-linked incentive for non-gazetted staff in time for Diwali. Anurag Thakur, minister of youth affairs and sports, said that the Union Cabinet has approved a productivity-linked incentive for non-gazetted railroad employees for 78 days. The price is Rs. 1,969 crore.

About 13 lakh railroad workers would gain from this.

All non-gazetted personnel (Group C and Group D) get PLB, which is equal to 78 days’ earnings, from the Railways as a reward for increasing productivity and ensuring safety.

The lowest grade (Group D) workers’ minimum wage serves as the foundation for calculating the PLB.

The Indian Railway Employees Federation (IREF), in the meanwhile, has written to the railways to request an increase in the productivity-linked bonus (PLB) that the employees get each year before the holiday season.

The IREF contends that even though the railroads adopted the 7th Pay Commission’s recommendations on January 1, 2016, the PLB is still determined and paid based on the minimum wage set by the 6th Pay Commission.

According to the Federation, the total pay for all Group C and Group D workers is just Rs 17,951, which is based on the minimum monthly wage of Rs 7000.

Given the minimum wage recommended by the 7th Pay Commission, they have urged that it be increased to Rs 46,159.

The Ministry of Railways said that 11.27 lakh non-gazetted Railway personnel were anticipated to get the bonus when it announced the PLB in October of last year.