7th Pay Commission: Railway Employees Union Demands Productivity-Linked Bonus

Ahead of the festive season, the Indian Railway Employees Federation (IREF) has written to the railways demanding an increase in the productivity-linked bonus (PLB) that the workers get every year.

The railway administration offers a Productivity Linked Bonus (PLB) to all non-gazetted employees (both Group C and Group D), amounting to 78 days' worth of wages. This incentive is aimed at boosting productivity and ensuring safety among the workforce. The calculation of PLB is based on the minimum wage received by employees in the lowest grade (Group D).

The IREF contends that despite the railways adopting the 7th Pay Commission's recommendations from January 1, 2016, the calculation and disbursement of PLB still rely on the minimum salary set by the 6th Pay Commission. In the 6th Pay Commission, the minimum wage for Group D employees was merely Rs 7000, whereas the 7th Pay Commission increased it to Rs 18,000.

As per the Federation, all employees belonging to Group C and Group D receive only Rs 17,951, computed from the base of a minimum monthly salary of Rs 7000. They are advocating for an increase to Rs 46,159, aligning with the minimum salary recommended by the 7th Pay Commission. The Federation emphasized in a letter that during the Covid-19 pandemic, when a nationwide lockdown was enforced and people were hesitant to leave their homes, railway employees took on significant risks by ensuring the continuous operation of trains, even in highly unfavorable conditions.

"They set new records in train operations which resulted in an increase in railways' income and this fact has been acknowledged in the quarterly bulletin of the Railways," it added.

This has not gone well with many employees and the the Railway Board should address the issue at the earliest, the Federation stated.

In October 2022, while announcing the PLB, the Ministry of Railways had said that 11.27 lakh non-gazetted Railway employees were likely to benefit from the bonus.

"The financial implication of payment of 78 days' PLB to railway employees has been estimated to be Rs1832.09 crores. The wage calculation ceiling prescribed for payment of PLB is Rs 7,000/- p.m. The maximum amount payable per eligible railway employee is Rs 17,951 for 78 days," a statement from the Ministry of Railways on stated.