New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a productivity-linked bonus equivalent to 78 days’ wages to eligible non-gazetted employees of the Indian Railways for the fiscal year 2020-21.


This move is expected to motivate the employees for working towards improving the performance of the Indian Railways.


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The Railway Protection Force (RPF) and Railway Protection Special Force (RPSF) personnel have, however, been excluded from the productivity-linked bonus.


About 11.56 lakh non-gazetted employees of the Indian Railways are likely to benefit from this decision.


The financial implication of payment of 78 days’ productivity linked bonus to the railway employees has been estimated to be Rs. 1984.73 crore.


The wage calculation ceiling prescribed for payment of the productivity linked bonus to the eligible non-gazetted railway employees is Rs.7, 000 per month.


The maximum amount payable per eligible railway employee is Rs. 17,951 for 78 days.


The payment of productivity linked bonus to eligible railway employees is made each year before the Dussehra/ Puja holidays.


In tune with the same, the Cabinet’s decision shall be implemented before the holidays for this year as well.


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The productivity linked bonus amount of 78 days’ wages were paid for the financial years from 2010-11 to 2019-20.


The Indian Railways had earlier in 2019-20 given its nearly 11.58 lakh non-gazetted employees a bonus of 78 days amounting to a total of Rs 2,081.68 crore.