Govt approves productivity-linked bonus for railway employees

The union cabinet chaired by Prime Minister Narendra Modi on Saturday gave its ex-post facto approval for the payment of productivity-linked bonus (PLB) equivalent to 78 days' wages for the financial year 2013-14 to all eligible non-gazetted railway employees.

The financial implication of payment of 78 days' PLB to railway employees has been estimated at Rs1,063.38 crore. The wage calculation ceiling prescribed for payment of PLB to eligible non-gazetted railway employees is Rs 3,500 pm. About 1.26 million non-gazetted railway employees are likely to benefit from the decision, an official release said.

The PLB covers all non-gazetted railway employees (excluding RPF/RPSF personnel) throughout the country. This year also, PLB equivalent to 78 days' wages has been paid as a special case to motivate employees.

The Railways were the first departmental undertaking of the government where the concept of PLB was introduced. The main consideration at that time was the important role of the Railways as an infrastructural support in the performance of the economy as a whole. In the overall context of Railways' working, it was considered desirable to introduce the concept of PLB as against the concept of Bonus on the lines of the Payment of Bonus Act (1965).  Even though the Payment of Bonus Act does not apply to the Railways, yet the broad principles contained in that Act were kept in view for the purpose of determining the "Wage/Pay Ceiling", definition of 'Salary'/'Wage', etc. The PLB scheme for the Railways came into force from the year 1979-80 and was evolved in consultation with the two recognised federations - the All India Railwaymen's Federation and National Federation of Indian Railwaymen - and with the approval of the cabinet. The scheme envisages a review every three years.