The Union Cabinet has approved a Productivity Linked Bonus (PLB) for railway employees, amounting to 78 days' wages, which totals Rs 1,865.68 crore. This decision will benefit approximately 10,91,146 non-gazetted railway staff. The bonus is traditionally awarded before major festivals like Durga Puja and Dussehra, recognising the hard work and performance of railway employees.

Each eligible employee will receive a maximum bonus of Rs 17,951. The PLB covers a wide range of railway personnel, including Track Maintainers, Loco Pilots, Train Managers, Station Masters, Supervisors, Technicians, and other Group ‘C’ employees.

This year's bonus comes in light of the Indian Railways' impressive performance in the fiscal year 2024-25, where it recorded the transportation of 1,614.90 million tonnes of freight and nearly 7.3 billion passengers. The government views this bonus as both a reward for past achievements and an incentive for future efficiency improvements.

The announcement has also sparked discussions regarding potential hikes in Dearness Allowance (DA) and the establishment of the 8th Pay Commission. The DA is typically revised twice a year, with the next adjustment expected in early October, aligning with the festive season. This could lead to increased disposable income for railway employees, potentially boosting consumer spending during the holidays.

In comparison to last year, this year's bonus package is lower, as the previous PLB covered a larger workforce and had a higher financial outlay. The Cabinet also approved various infrastructure projects worth Rs 4,000-95,000 crore, including the doubling of the Bakhtiyarpur–Rajgir–Tilaiya line in Bihar, aimed at enhancing railway capacity.