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Union Cabinet Expected to Clear Productivity-Linked Bonus for Railway Staff Before Diwali

Officials say a pre-festival payout could lift household spending following recent GST cuts.

Overview

  • The Cabinet is slated to consider the proposal on Wednesday, with government sources indicating approval is likely and a post-meeting briefing planned by the information minister.
  • The payout targets non-gazetted railway employees under the productivity-linked bonus scheme, which is typically calculated as wages for a set number of days and released before Dusshera.
  • Indian Railways employs nearly 11 lakh people, and last year a similar bonus reached almost the same number of staff, according to prior approvals.
  • Retailers and economists expect a boost to festive-season demand, citing the cash infusion to households and recent reductions in GST rates on several consumer goods.
  • No official notification has been issued yet, and details on the amount and disbursal timeline remain pending until the Cabinet decision is announced.