In a pre-Diwali morale booster, the Indian government has approved a ₹1,866 crore productivity-linked bonus (PLB) for over 10.9 lakh railway employees, equivalent to 78 days’ wages. Announced on September 24, 2025, following a Union Cabinet meeting chaired by Prime Minister Narendra Modi, the bonus acknowledges the Indian Railways’ stellar performance in FY24-25, including a record 1,614.90 million tonnes of cargo loading and nearly 7.3 billion passengers carried. For railway staff, families, and economic observers searching Diwali bonus railway employees 2025, productivity linked bonus Rs 1866 crore, or Modi cabinet railway PLB, this annual payout—disbursed directly to bank accounts—aims to stimulate festive spending, with individual bonuses up to ₹17,951 based on the minimum wage ceiling. The gesture, part of a ₹94,000-95,000 crore project approvals package, continues a tradition rewarding non-gazetted staff for operational excellence.
Last year’s bonus was ₹2,029 crore for 11.72 lakh employees, reflecting steady recognition amid rising workloads.
Bonus Breakdown: 78 Days’ Wages for Non-Gazetted Staff
The PLB, calculated on the basic pay of the lowest wage group (₹7,000 monthly under the 6th Pay Commission), benefits 10,91,146 non-gazetted employees across Group C and D roles, including loco pilots, track maintainers, station masters, guards, supervisors, technicians, and helpers. Payments, expected to start soon, will be credited directly to accounts before Diwali or Durga Puja, depending on regional festivals.
Eligibility and payout:
- Covered Staff: Non-gazetted railway employees (Group C & D).
- Bonus Equivalent: 78 days’ wages, capped at ₹17,951 per employee.
- Total Beneficiaries: 10,91,146 (down slightly from 11.72 lakh last year).
- Government Outlay: ₹1,866 crore (FY24-25 exchequer share).
Railway Minister Ashwini Vaishnaw highlighted the railways’ record performance, including 5,975 special trains for Diwali and Chhath Puja.
| Category | Beneficiaries | Bonus Equivalent | Total Payout (₹ Cr) |
|---|---|---|---|
| Group C (Supervisors, Technicians) | ~7 Lakh | 78 Days’ Wages | Majority Share |
| Group D (Track Maintainers, Helpers) | ~3.9 Lakh | 78 Days’ Wages | Support Roles |
| Total | 10.91 Lakh | Up to ₹17,951/Employee | 1,866 |
Economic and Social Impact: Boosting Festive Spending
The bonus, a tradition since 1979, injects liquidity into households, stimulating Diwali consumption in electronics, apparel, and durables. With inflation controlled and consumer confidence rising, it supports Q3 GDP growth, per economists.
- Household Boost: Average ₹17,000 per family aids festive shopping.
- Railway Morale: Recognizes 7.3 billion passengers and 1,614.90 MT cargo loaded in FY24-25.
- Broader Approvals: Part of ₹94,000-95,000 crore cabinet nods, including railway doublings like Bakhtiyarpur-Rajgir-Tilaiya.
The All India Railwaymen’s Federation (AIRF) welcomed it but urged updating the ₹7,000 wage ceiling to ₹18,000 under the 7th Pay Commission.
Conclusion: A Festive Fillip for Frontline Heroes
The government’s ₹1,866 crore Diwali bonus for 10.9 lakh railway employees is more than a payout—it’s acknowledgment of their pivotal role in India’s transport backbone. As funds flow before festivities, it promises economic cheer and workforce motivation. For railway families, it’s a well-earned light-up; for the economy, a consumption spark. Will AIRF’s pay update call echo in Budget 2026? The tracks lead forward. ET
