Production Linked Bonus for Railway Employees approved by cabinet

By | November 4, 2015


07-October, 2015

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has approved the Production Linked Bonus for Railway Employees.

As a result of the review of the scheme and approval of the Cabinet the salient features of the PLB scheme are as under: –

a) The output for a year is reckoned by the equated net tonne kilometres by adding together:-

i) total goods revenue net tonne kilometres.

ii) non-suburban passenger kilometres converted by a factor of 0.076.

iii) suburban passenger kilometres converted by a factor of 0.053.

b) The input is taken as the non-gazetted staff strength (excluding RPF/RPSF personnel), increased by the incremental increase/decrease in capital (over average of last three years) during the year. Incremental capital is confined to Rolling Stock utilised for movement of trains. The relative weights given are 0.50 for Tractive Effort, 0.20 for Wagon Capacity and 0.30 for Seating Capacity. The labour input i.e. non-gazetted staff strength is then increased to the extent of the percentage increase in the incremental capital.

Highest PLB amount of 78 days’ wages was paid for the financial years 2010-11, 2011-12, 2012-13 and 2013-14. This year also PLB equivalent to 78 days’ wages will be paid considering the good financial performance which is expected to motivate employees for working towards improving the same in future.

The financial implication of payment of 78 days’ PLB to railway employees has been estimated to be Rs. 1030.02 crore. The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is 3500/- p.m. The maximum amount payable per eligible railway employee is Rs. 8975 for 78 days.

About 12.58 lakh non-gazetted Railway employees are likely to benefit from the decision.

The Productivity Linked Bonus on Railway covers all non-gazetted railway employees (excluding RPF/RPSF personnel) who are spread over the entire country.


The Union Cabinet in its meeting held on October 2015 accepted the proposal of the Ministry of Railways for payment of Productivity Linked Bonus (PLB) equivalent to 78 days’ wages for the financial year 2014-2015 for all eligible non-gazetted Railway employees (excluding RPF/RPSF personnel).

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