Railway employees are urging the removal of the notional salary ceiling on their annual productivity-linked bonus, advocating for calculations based on the Seventh Pay Commission’s minimum salary.
In a letter, the All India Railwaymen’s Federation (AIRF) General Secretary, Shiva Gopal Mishra, has called for the removal of the notional salary ceiling on the Productivity Linked Bonus (PLB) for railway employees for the year 2023-24. Traditionally, railway workers receive this bonus before the Dussehra Puja holidays, but the payment is currently based on a notional salary of just Rs 7,000 per month.
The AIRF argues that railway employees perform unique and demanding duties, often in remote areas where essential services are lacking. Despite their hard work and significant contributions, the government’s continued use of the notional salary for bonus calculations has been a point of contention.
Recently, a group of railway employees made an appeal to Union Minister Ashwini Vaishnaw to calculate their annual PLB based on the 7th Pay Commission instead of the 6th Pay Commission.
In a letter, Sarvjeet Singh, National General Secretary of the Indian Railways Employee Federation (IREF), said the current PLB is calculated using a minimum salary of Rs 7,000 per month from the 6th Pay Commission. He noted that under the 7th Pay Commission, the minimum salary has been raised to Rs 18,000, which railway employees have been receiving since January 1, 2016.
Employees call for bonus to reflect actual salaries
IREF highlighted that government guidelines state railway employees should receive a PLB equivalent to 78 days’ salary. However, the current payment of Rs 17,951 is calculated based on a monthly salary of Rs 7,000, which does not accurately represent the earnings of any railway employee.
The minimum basic monthly salary in the railways is Rs 18,000. Consequently, the 78-day bonus of Rs 17,951 is below the minimum salary, raising concerns in the industry. Based on the correct minimum salary of Rs 18,000, the 78-day bonus should be Rs 46,159.
This year, Indian Railways achieved record freight loading of 1,591 metric tons, up from 1,312 metric tons the previous year, showcasing the dedication of railway staff. However, the Railway Board, under pressure from the Ministry of Finance, proposed a reduction in the PLB calculation formula, suggesting a bonus equivalent to only 76 days’ wages. The AIRF strongly opposed this proposal, and after intervention from authorities, it was agreed that the bonus would remain at 78 days.
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AIRF calls for fair bonus system as Dussehra approaches
The AIRF is now urging all railway workers to unite in advocating for the removal of the salary ceiling, emphasizing that the PLB should reflect actual wages rather than a notional figure. They stress that a fair bonus system is essential for recognizing the hard work and productivity of railway employees.
As the Dussehra holidays approach, railway workers hope to secure a more equitable bonus calculation that truly reflects their contributions.
