The Union Cabinet, led by Prime Minister Narendra Modi, approved payment of ₹2,010 crore to 11.40 lakh railway employees on Wednesday, October 14, 2026. As per Zee News, the bonus was approved ahead of Dussehra on October 20, with Union Minister Ashwini Vaishnaw calling it a 'Diwali gift' for hardworking railway employees. The Cabinet release stated that the payment of PLB acts as an incentive to motivate railway employees for working towards improvement in Railways performance. The bonus is being provided in recognition of the 'excellent performance by the Railway staff' during 2025-26.
Under the approved system, eligible non-gazetted railway employees receive a maximum bonus of ₹17,951 for 78 days, calculated based on a wage ceiling of ₹7,000. The latest approval maintains the existing structure but provides significant relief to employees across various categories including Track maintainers, Loco Pilots, Train Managers (Guards), Station Masters, Supervisors, Technicians, Technician Helpers, Pointsman, Ministerial staff and other Group 'C staff'. This represents a substantial increase from the previous ₹18,000 ceiling that the Indian Railways Technical Supervisors' Association had recommended. The bonus will cover 11,40,770 non-gazetted railway employees in recognition of their performance during 2025-26.
The Cabinet's approval comes amid record-breaking railway performance in 2025-26, with Railways transporting a record 1,670 million tonnes of cargo and carrying nearly 7.41 billion passengers. As per Zee News, in FY26, Railways loaded a record cargo of 1,670 million tonnes and carried nearly 7.41 billion passengers. The Railway Board has clarified that the payment of PLB to eligible railway employees is made each year before the Durga Puja/Dussehra holidays, ensuring employees receive their annual festive-season payout. The government said the productivity-linked bonus is aimed at motivating railway employees to contribute towards further improvements in the performance of the national transporter.
Indian Railways continued its strong performance trajectory in August 2026, with freight loading increasing by 5.4% year-on-year to 137.9 million tonnes compared to 130.9 million tonnes in August 2025. According to Zee News, freight revenue also increased by 6.27% year-on-year during the month. On the passenger side, Indian Railways carried 67.27 crore passengers in August 2026, compared with 64.43 crore in August 2025. The increase in freight movement is expected to strengthen rail-based supply chains for industries and improve the movement of essential commodities, raw materials, and finished goods across regions. The railway network also expanded its freight-handling infrastructure with the commissioning of five new Gati Shakti Cargo Terminals during the month.
