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Indian Railways announces ₹2,009 crore bonus for 1.14 million workers

The Ministry of Railways has approved a productivity-linked bonus equivalent to 78 days' wages for non-gazetted employees. The move will benefit over 1.14 million railway workers across the country.

LSN India · 14 October 2026

Indian Railways announces ₹2,009 crore bonus for 1.14 million workers

India's Ministry of Railways has cleared a ₹2,009 crore productivity-linked bonus for approximately 1.14 million non-gazetted employees, signalling continued focus on workforce incentivization within the rail sector.

The bonus, equivalent to 78 days' wages, will see individual payouts capped at ₹17,951 per eligible employee. The measure aims to recognize and reward productivity gains achieved by railway personnel across operational and administrative functions.

Non-gazetted railway employees form a substantial portion of the Indian Railways' workforce, handling critical roles in maintenance, operations, and service delivery across the national rail network. The productivity-linked bonus scheme has historically been an important component of the railways' human resource management strategy.

The approval underscores the government's commitment to supporting rail sector employees while maintaining fiscal discipline through defined payout ceilings. The bonus distribution is expected to provide financial relief to a large segment of railway workers and their families across India.

The Ministry of Railways administers one of the world's largest railway networks, employing hundreds of thousands of personnel. Regular incentive schemes such as this productivity-linked bonus are designed to enhance employee morale and operational efficiency across the rail system.