Indian Railways employees may receive a Diwali bonus increase of 28,200 rupees if calculated under the 7th Pay Commission.

As it stands, the current bonus calculation is based on the Sixth Pay Commission, which sets the minimum salary at Rs 7,000 per month. However, under the Seventh Pay Commission, the minimum salary has been raised to Rs 18,000. Sarvjit Singh, the National General Secretary of the Indian Railway Employees Federation (IREF), highlighted that calculating the productivity-linked bonus (PLB) based on the outdated figure is unjust to employees, especially considering their crucial role during the recent pandemic when they ensured the continued operation of trains amidst lockdowns.

Potential Increase in Bonus Amount

IREF emphasizes that, according to government guidelines, railway employees should receive a PLB equivalent to 78 days’ basic salary. Currently, the payment is only Rs 17,951 based on the Rs 7,000 salary. Singh noted that this amount is insufficient in the context of rising inflation. If the government decides to adjust the bonus to reflect the Seventh Pay Commission’s minimum salary, employees would receive a bonus of Rs 46,159 for 78 days, leading to an increase of Rs 28,208 compared to the current payment system. The union has formally requested this adjustment to enhance the financial well-being of railway employees during the festive season.

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