Great news for railway employees! The Union Cabinet may approve the proposal for a Diwali bonus in its upcoming meeting.
Government sources say that, considering the festive season, the Cabinet could soon approve a productivity-based bonus for railway employees.
This bonus is mainly given to non-gazetted railway staff for their contribution and efforts to improve the efficiency and performance of Indian Railways.
Last year, around 11 lakh employees received this bonus, which not only boosted morale but also increased festive spending.
Economic Impact and Experts’ Views
According to a report by Business Today, an announcement on bonuses could happen in the upcoming meeting.
Experts suggest that paying bonuses to railway employees—who represent a large consumer base in urban and semi-urban areas—could directly boost domestic consumption.
Combined with the recently implemented GST reduction, this could increase retail and consumer demand during Diwali.
Economists note that such cash benefits during the festive season have a multiplier effect, supporting continued demand in the final quarter of the year.
Demands from Railway Unions
Railway unions have also demanded an increase in productivity bonuses and the issuance of a gazette notification for the 8th Pay Commission.
The Indian Railway Employees Federation (IREF) highlighted that bonuses are still calculated based on the 6th Pay Commission’s minimum salary of ₹7,000, while the 7th Pay Commission sets the minimum at ₹18,000.
IREF’s National General Secretary, Sarvjeet Singh, called this “extremely unfair.”
Similarly, the All India Railway Employees Federation (AIRF) demanded that the ₹7,000 monthly limit used in bonus calculations be removed and bonuses be calculated according to the current pay structure.
