Cabinet approves Railway bonus at 65 days' wages

New Delhi, Sep 21 (UNI) The Cabinet today approved payment of productivity-linked bonus equivalent to 65 days' wages to eligible railway employees for 2005-06.

The decision, which would cost the Railways Rs 677 crore, would benefit nearly 13.60 lakh non-gazetted Group B, C and D employees.

The maximum amount payable to an eligibile Railway employee under the bonus scheme is Rs 5342.

In the preceding four years, the Railways had paid Productivity Linked Bonus to its employees equivalent to 59 days' wages.

The bonus, worked out on a formula approved by the Cabinet, is expected to inspire Railwaymen to increase the level of productivity and will maintain good industrial relations in the Railways, an official spokesperson said.

''The decision is a historic one and has been taken in view of the excellent performance of the Indian railways during 2005-06,'' a Railway Ministry spokesman said.

A meeting of the Cabinet chaired by Prime Minister Manmohan Singh also gave its ex-post-facto approval for modifying the Banking Companies (Acquisition and Transfer of Undertakings) and Financial Institutions Laws (Amendment) Bill.

The Bill has already been passed by the Lok Sabha on August 23 and by the Rajya Sabha the next day.

UNI SKS/SN VA BD1732