Railways announces ₹1,866 crore Diwali bonus:Govt approves doubling of a 104 km railway line in addition to construction of 78 km-long 4-lane highway in Bihar

The Central Government announced a bonus for railway employees on Diwali. In the cabinet meeting held today, i.e., on September 24, approval was given for a 78-day productivity-linked bonus (PLB) for railway employees. A budget of ₹1,866 crore was allocated for this, benefiting 10.91 lakh railway employees. This bonus is equivalent to 78 days of salary for the employees, which, like every year, will be given to non-gazetted railway employees before the Durga Puja-Dussehra holidays. Under this bonus, each eligible railway employee will receive a maximum of ₹17,951. This amount will be given to track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, technician helpers, pointsmen, ministerial staff, and other Group ‘C’ employees. Doubling work on 104 kilometers In the cabinet meeting, the single railway line between Bakhtiyarpur-Rajgir-Tilaiya has been approved for doubling. The work to double the railway line of approximately 104 kilometers in Bihar has been approved, with a cost of ₹2,192 crore. Approval for 4 lanes The cabinet has approved the 4-lane construction on the Sahibganj-Areraj-Bettiah section of NH-139W in Bihar on a hybrid annuity mode. The total length of this project will be 78.942 kilometers and its cost will be 3,822.31 crore rupees. This 4-lane greenfield project will improve connectivity between the state’s capital Patna and Bettiah. Railway’s performance was excellent in the year 2024-25 This bonus encourages railway employees to work even better, improving the performance of the railways. In the year 2024-25, the performance of Indian Railways was excellent. The railways transported a record 1614.90 million tons of goods and approximately 7.3 billion, or 730 crore, passengers to their destinations. The government said that this bonus is a recognition of the employees’ hard work and reflects their contribution to the progress of the railways. This decision will not only boost the morale of the employees but also help in further improving the services of the railways. Last year, about 1.1 million railway employees received this bonus, which not only boosted their morale but also promoted shopping during the festive season. How is the bonus calculated? The bonus is determined based on the number of days. The cabinet decides each year how many days the bonus will be given for. For the past several years, this number has been set at 78 days. A minimum salary is determined for the calculation of PLB. Currently, the government calculates the bonus based on the minimum monthly salary of ₹7,000 as per the Sixth Pay Commission. This means that during the calculation, this basic salary is assumed for all employees, even if their salary is higher. Formula for Calculating Diwali Bonus Bonus = (Minimum Salary ÷ 30 days) × Declared PLB Days (e.g., 78 days) For Example Minimum Salary = ₹7,000
1 Day’s Salary = 7000 ÷ 30 = ₹233.33
78 Days’ Salary = 233.33 × 78 = ₹18,200 (approximately) However, the government has set the maximum bonus limit at ₹17,951. Therefore, employees receive a maximum of ₹17,951. Bonus Good News for the Market This year, a similar impact can be expected. This bonus is not only a relief for employees but also good news for the market. Shopkeepers and businessmen are expecting higher demand during Diwali, especially after the recent GST cuts, their expectations have increased. Railway employees, who form a large consumer group in urban and semi-urban areas, may increase their purchases of electronics, clothing, and other goods with this bonus. What will be the impact on the economy? Economic experts say that the impact of the festive bonus is not limited to the pockets of employees, but it creates a multiplier effect in the economy. That is, this money goes into the market, which increases demand and accelerates economic activities. Especially when inflation is under control and the government is trying to promote consumer spending. Then this bonus can help maintain demand in the last three months of the year. However, the government is also keeping an eye on spending and economic balance in the meantime. Railway Union’s Demand Railway employee unions had demanded an increase in the bonus amount. They say that currently, the bonus calculation is based on the minimum wage of ₹7,000 from the Sixth Pay Commission, which is unfair. Indian Railway Employees Federation (IREF) National General Secretary Sarvjeet Singh had said, ‘Under the Seventh Pay Commission, the minimum wage is ₹18,000, which has been in effect since January 1, 2016. Still, giving bonuses based on the old salary is wrong.’ All India Railwaymen’s Federation (AIRF) has also demanded an increase in the bonus amount. They say that the monthly limit of 7,000 rupees is now outdated and needs to be updated according to the current salary structure. Additionally, the unions have demanded that the bonus be given before Dussehra and that a government notification be issued for the formation of the Eighth Pay Commission.