The Union Cabinet has approved a Productivity Linked Bonus of 78 days’ wages for around 11.41 lakh eligible railway employees, authorising a total payout of ₹2,009.61 crore for 2025-26. The decision covers non-gazetted staff across several operational and supervisory categories in Indian Railways.
The maximum bonus payable to an eligible employee has been fixed at ₹17,951. The annual payment is scheduled ahead of the Durga Puja and Dussehra holiday period, when the Railways traditionally releases the Productivity Linked Bonus for eligible employees.
According to the government, the payment recognises the performance of railway employees during 2025-26. The eligible workforce includes track maintainers, loco pilots, train managers, station masters, supervisors, technicians and other Group C employees.
The categories covered by the decision represent functions involved in the day-to-day operation and maintenance of the railway network. Track maintainers are responsible for track-related work, while loco pilots, train managers and station masters are part of train operations and station management. Technicians and supervisors are also included among the non-gazetted employees covered by the payout.
The government said Indian Railways recorded freight loading of 1,670 million tonnes and carried nearly 7.41 billion passengers during 2025-26. These figures were cited in connection with the performance assessment underpinning the bonus decision.
The passenger figure places the payment in the context of the railway system’s extensive operating workload. Indian Railways serves passengers across long-distance, regional and suburban services, while its freight operations move commodities and other cargo across the country. The bonus announcement therefore concerns not only an employee benefit but also the workforce supporting a transport system used at a national scale.
The Productivity Linked Bonus is intended to incentivise railway employees and improve operational performance, according to the government. Unlike a payment restricted to a single department, the approved payout spans multiple non-gazetted categories, including employees working in safety-linked, technical, station and maintenance functions.
The ₹2,009.61 crore allocation will be distributed among the approximately 11.41 lakh eligible employees, subject to the applicable 78-day wage calculation and the stated maximum payment of ₹17,951 per employee. The Cabinet approval establishes the total amount and the employee coverage for the 2025-26 bonus cycle.
The decision comes before the Durga Puja and Dussehra holidays, the period identified by the government for disbursing the annual bonus. The next step is the release of the approved Productivity Linked Bonus to eligible non-gazetted railway employees under the notified payment arrangements.
