On 14 October 2026 the Union Cabinet gave its nod to a special payment for railway employees, scheduling the disbursement ahead of the Durga Puja and Diwali holidays. The decision was framed as a token of appreciation that would reach workers while they prepared for the celebrations, linking the financial boost directly to the seasonal mood.
The approval covers roughly 11.4 lakh non‑gazetted railway employees, a figure that translates to 11,40,770 individuals when expressed in full. These workers span a variety of operational roles: track maintainers, locomotive pilots, train managers, station masters, supervisors, technicians, pointsmen and other Group ‘C’ staff. The benefit is limited to those who are not gazetted officers, ensuring that the bulk of the frontline workforce is included.
Union Cabinet chaired by Hon’ble PM Shri @narendramodi approves Productivity Linked Bonus (PLB) for over 11.40 lakh Railway employees. #ShramevJayate #AtmanirbharBharat Read More: https://t.co/oFn9FCidDQ https://t.co/X3nXOo1IxB
The government earmarked 2,009 crore rupees for the bonus, with a more precise outlay of 2009.61 crore rupees cited in the announcement. This sum is intended to be distributed among the eligible employees, translating into an individual ceiling of up to 17,951 INR per person. The amount reflects a calculation based on each employee’s salary, scaled to cover 78 days of pay.
The mechanism is designed to reward past productivity while signalling an incentive for future output.
The payment is structured as a Productivity Linked Bonus (PLB) equal to 78 days’ salary. The mechanism is designed to reward past productivity while signalling an incentive for future output.
The Union Cabinet, chaired by Hon'ble Prime Minister @narendramodi has approved the Productivity Linked Bonus (PLB) for over 11.40 lakh non-gazetted railway employees in recognition to the stellar performance by Indian Railways during FY 2025–26. #ShramevJayate #AaatmanirbharBharat @RailMinIndia
The timing of the bonus follows a year of notable achievements for Indian Railways. In the fiscal year 2025‑26 the system moved a record cargo load of 1670 million tons and carried approximately 7.41 billion passengers. These figures were highlighted as evidence of excellent performance, providing the rationale for allocating a substantial bonus to the staff who enabled those numbers.
Officials described the bonus as having two aims: to reward the best performance already demonstrated and to encourage continued improvement in the coming periods. By linking the payment to productivity, the government hopes to reinforce a culture where efficiency gains are recognised and compensated. The stance of key figures—Prime Minister Narendra Modi, Railway Minister Ashwini Vaishnaw and the Cabinet as a whole—was noted as neutral, indicating that the decision was presented as an administrative measure rather than a partisan proclamation.
Union Cabinet chaired by Hon'ble Prime Minister SHRI NARENDRA MODI approves " PRODUCTIVITY LINKED BONUS (PLB) " For Non-Gazetted Railway Employees #ShramevJayate #AaatmanirbharBharat #IndianRailways #NorthWesternRailway #PLB @PMOIndia @RailMinIndia @AshwiniVaishnaw @VSOMANNA_BJP @PIB_India @DRMJaipur_ @DRMJodhpurNWR @DrmAjmer @drmbikaner
With the Cabinet’s approval in place, the next step is the actual disbursement of the funds before the Durga Puja and Diwali holidays. Employees can expect the bonus to appear in their accounts in time for the festive spending period.
