Railway staff get 78-day bonus: 11.40 lakh to share Rs 2,009.61 crore before Diwali

The Union Cabinet, with Prime Minister Narendra Modi in the chair, has cleared a 78-day Productivity Linked Bonus for railway employees, giving them a festival-season payout just ahead of Diwali. The decision was taken at the Cabinet meeting on Wednesday, 14 October 2026, though some accounts placed the meeting on Tuesday.

Railway Minister Ashwini Vaishnaw announced the decision at a press conference after the meeting. He said the bonus was sanctioned to recognise the outstanding work of railway staff. It covers the financial year 2025-26.

According to government figures, 11,40,770 eligible employees, or about 11.40 lakh, will benefit. The Centre has approved a total outlay of Rs 2,009.61 crore for the purpose. The bonus is meant for non-gazetted staff of Indian Railways and equals 78 days of wages.

The ceiling per person is Rs 17,951 for the 78 days. This figure comes from a fixed wage ceiling of Rs 7,000 a month, on which the 78 days are calculated. The Railway Ministry has made it clear that not every employee will receive the same sum, because the actual payment depends on individual eligibility and the rules that apply.

The bonus covers a wide range of Group C staff. Track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, technician helpers and pointsmen are all included, along with ministerial and office staff, clerks and other eligible Group C employees. The government noted that these workers keep trains running every day and look after passenger safety, freight movement and technical work.

The Cabinet said the payout is also intended to motivate staff to keep improving operational efficiency. It pointed to the railways' record in 2025-26, when they carried a record 1,670 million tonnes of freight and about 7.41 billion passengers. The government credited employees across departments with a large share of that performance.

The outlay is higher than last year's. On 24 September 2025, the Cabinet approved a 78-day bonus of Rs 1,865.68 crore for 10,91,146 employees. This year's amount is Rs 143.93 crore more, a rise of about 7.7 per cent, while the number of beneficiaries has grown by nearly 49,600, or about 4.5 per cent. The bonus period of 78 days and the maximum payment of Rs 17,951 are unchanged from last year.

A productivity-linked bonus is an additional payment made to eligible employees against benchmarks tied to an organisation's performance. The scheme has been in force on the railways for several years. The money is usually paid before Durga Puja and Dussehra, and can help families with household expenses and festival shopping. However, no official schedule has yet been announced for the date on which the amount will reach each employee's account.

Meanwhile, railway unions and employee organisations have been pressing for the wage ceiling used in the calculation to be raised. The bonus is still worked out on a pay of Rs 7,000, and with inflation, the demand to lift it to Rs 18,000 is gaining strength. The Indian Railway Technical Supervisors Association (IRTSA) has asked that the ceiling for employees at Level 2 and above be raised to Rs 18,000 along with dearness allowance. It has also suggested that the bonus be calculated according to the different pay levels of employees. If such a change is made, the bonus could rise substantially in future.