Modi Government approves Productivity Linked Bonus for Railway Employees

| September 20, 2017

Cabinet approves Productivity Linked Bonus for Railway Employees Payment before Dussehra/Puja Festival season Incentive to Improve Productivity and Efficiency of Railways








The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to pay Productivity Linked Bonus (PLB) equivalent to 78 days wages to eligible non-gazetted railway employees (excluding RPF/RPSF personnel) for the financial year 2016-17. About 12.30 lakh non-gazetted Railway employees are likely to benefit from the decision. This payment will be made before Dussehra/Puja holidays, bringing a smile to lakhs of families ahead of the festive season.




The payment of PLB would serve as an incentive, and result in motivating a large number of Railway employees, particularly those involved in execution and operations of railways, to improve their productivity and ensure safety, speed and service for Railway customers. Indian Railways operates on the principle of maximum public welfare, and in this context, this bonus payment will help in improving accountability and efficiency in railways operations.

The financial implication of payment of 78 days’ PLB to railway employees has been estimated to be Rs. 2,245.45 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.




Background

The Railways were the first departmental undertaking of the Government of India where the concept of PLB was introduced. The main consideration at that time was the important role of the Railways as an infrastructural support in the performance of the economy as a whole. In the overall context of Railway working, it was considered desirable to introduce the concept of PLB as against the concept of Bonus on the lines of the Payment of Bonus Act -1965.

Even though the Payment of Bonus Act does not apply to the Railways, yet the broad principles contained in that Act were kept in view for the purpose of determining the “Wage/Pay Ceiling”, definition of ‘Salary’/’Wage’, etc. The PLB Scheme for the Railways came into force from the year 1979-80 onwards and was evolved in consultation with the two recognised federations, the All India Railwaymen’s Federation and National Federation of Indian Railwaymen and with the approval of the Cabinet. The scheme envisages a review every three years.

Category: Indian Railways

About the Author ()

Comments are closed.