Union Cabinet approves Productivity linked bonus for Railway Employees

Union Cabinet has approved the payment of Productivity Linked Bonus (PLB) equivalent to 78 days’ wages for financial year 2017-18 for all eligible non-gazetted Railway employees. It will be not available to Railway Protection Force (RPF) personnel. This decision will benefit about 11.91 lakh non-gazetted Railway employees.

Productivity Linked Bonus on Railway

It covers all non-gazetted railway employees (excluding RPF personnel) who are spread over entire country. The eligible railway employees are paid this bonus each year before Dusshera/ Puja holidays. This bonus is expected to motivate employees for working towards improving performance of Railways.


Indian Railways was the first departmental undertaking of Central Government to adopt concept of PLB in 1979-80. The main consideration introduction of PLB at that time was important role of Railways as infrastructural support in performance of economy as whole. In the overall context of Indian Railways working, PLB was introduced as against concept of bonus on lines of ‘The Payment of Bonus Act – 1965’.



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