Cabinet approves ₹1,866cr Diwali bonus for 10.9 lakh railway employees
What's the story
The Union Cabinet has approved a ₹1,866 crore as a Productivity Linked Bonus (PLB) for over 10.9 lakh railway employees. The bonus is equivalent to 78 days of their wages and is aimed at encouraging household spending during the festive season. It is likely to boost retail sales across sectors from electronics to clothing as disposable income rises.
Distribution details
Maximum payable amount per employee
The bonus, announced by Union Minister Ashwini Vaishnaw, will be distributed among different categories of railway employees. This includes track maintainers, locomotive pilots, train managers (guards), station masters, supervisors and technicians. The maximum amount payable to an eligible employee is ₹17,951 for 78 days. Last year too, the Modi government had approved a similar bonus worth ₹2,029 crore for over 11.7 lakh workers.
Economic impact
Boost to retail sales during festive season
The timing of this bonus payout is crucial as retailers and businesses are looking at a strong ongoing festival-season demand after recent GST rate cuts across multiple product categories. The bonus payout to railway employees, one of the largest consumer groups in urban and semi-urban markets, could directly boost household spending. Higher disposable income during Diwali usually translates into stronger retail sales from electronics and durable goods to clothing and festive essentials.