GOVERNMENT OF INDIA/ भारत सरकार
MINISTRY OF RAILWAYS/ रेल मंत्रालय
(Railway Board) (रेलवे बोर्ड)

RBE No. 71/2021

No. E(P&A)I/2021/PLB-1

New Delhi, dt. 06.10.2021

The General Managers/ CAOs,
All Indian Railways & Production Units etc. :

Subject: Payment of Productivity Linked Bonus to all eligible non-gazetted Railway employees for the financial year 2020-21.

The President is pleased to sanction Productivity Linked Bonus (PLB) equivalent to 78 (Seventy Eight) days wages without any ceiling on wages for eligibility for the financial year 2020-21 to all eligible non-gazetted Railway employees (excluding all RPF/RPSF personnel). Where, wages exceed Rs.7000/- per month, Productivity Linked Bonus will be calculated as if the ‘wages’ are Rs.7000/- p.m.

2. ‘Wages’ for the purpose of calculating Productivity Linked Bonus shall include ‘Basic pay’ as defined in the Railway Services (Revised Pay) Rules, 2016 and Dearness Allowance drawn during the financial year 2020-21. Other conditions of eligibility, method of calculation of wages, etc., as prescribed in this Ministry’s instructions and clarifications issued from time to time, shall remain unchanged.

Railway Bonus 2021 – Cabinet approves Productivity Linked Bonus PLB equivalent to 78 days wages

3, It has also been decided that in the case of eligible employees mentioned ’in Para above who were not placed under suspension, or had not quit service/retired/expired during the financial year 2020-21 or were on leave where leave salary admissible is not less than that admissible on leave on average pay, may be paid an amount of Rs. 47,951/- towards Productivity Linked Bonus for the financial year 2020-21. In the case of employees other than those mentioned above, pe amount of Productivity Linked Bonus may be calculated in accordance with the extant instructions on the subject.

4. Further, in relaxation to the provisions in Rules 905(2), 908 and 909 of State Railway Provident Fund Rules, as contained in Chapter 9 of R-I/1985 edition (2003 Reprint edition), such of the subscribers to the SRPF as are entitled to Productivity Linked Bonus may, if they so desire, deposit the whole or part of the amount admissible under the Scheme in their respective State Railway Provident Fund Accounts.

5. Disbursement of Productivity Linked Bonus for the financial year 2020-21 to all eligible non-gazetted Railway employees mentioned in Para 1 above should be made on priority in the same mode as payment of salary before the ensuing Puja/Dussehra holidays.

6. The above decision for payment of PLB has been taken despite adverse financial situation caused by COVID-19 challenges. Despite shortcomings in certain Railways pertaining to Operating Ratio, Earnings, Loading etc., PLB is being paid uniformly to all Zonal Railways. In view of unusual circumstances creating by COVID-19 pandemic, an appeal is made to all the Railwaymen to resolve all the shortcomings in the Railways for enhance productivity and financial viability.

7. This issues with the concurrence of Finance Directorate of the Ministry of Railways.

(N.P. Singh)
Joint Director, Estt.(P&A)
Railway Board

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Productivity Linked Bonus (PLB) equivalent to 78 days wages for the financial year 2020-21 for all eligible non-gazetted Railway employees (excluding RPF/RPSF personnel).

Indian railways latest news today

Cabinet approves Productivity Linked Bonus to railway employees for the financial year 2020-21

Posted On: 06 OCT 2021 3:40PM by PIB Delhi

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Productivity Linked Bonus (PLB) equivalent to 78 days’ wages for the financial year 2020-21 for all eligible non-gazetted Railway employees (excluding RPF/RPSF personnel).

The financial implication of payment of 78 days’ PLB to railway employees has been estimated to be Rs.1984.73 crore. The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is Rs.7000/- p.m. The maximum amount payable per eligible railway employee is Rs. 17,951 for 78 days.

About 11.56 lakh non-gazetted Railway employees are likely to benefit from the decision. Payment of PLB to eligible railway employees is made each year before the Dusshera/ Puja holidays. The decision of the Cabinet shall be implemented before the holidays for this year as well.

The PLB amount of 78 days’ wages were paid for the financial years from 2010-11 to 2019-20. For the year 2020-21 also PLB amount equivalent to 78 days’ wages will be paid which is expected to motivate the employees for working towards improving the performance of the Railways.

The Productivity Linked Bonus on Railway covers all non-gazetted railway employees (excluding RPF/RPSF personnel) who are spread over the entire country.

Method for calculating PLB:

a) The PLB has been paid as per formula approved by the Cabinet in its meeting held on 23.9.2000 for the years 1998-99 to 2013-14 (except 2002-03 to 2004-05 when slight changes were done with respect to Capital Weightage and Staff Strength). This formula was input : output based where output was reckoned in terms of equated net tonne kilometres and input was reckoned as the non-gazetted staff strength (excluding RPF/RPSF personnel) modified by Capital Weightage.

b) For the financial year 2012-13, PLB for 78 days was approved as a special case with the condition that the formula for PLB would be revisited keeping in view the recommendations of the Sixth CPC and the views of the Ministry of Finance. Consequently, the Ministry of Railways constituted a Committee to evolve a new formula.

c) The Committee recommended that weightage to both the formula of year 2000 and die new formula based on Operation Ratio (OR) may be in the ratio of 50 : 50. This formula ensured equal representation to the productivity in terms of physical parameters as well as financial parameters. The formula recommended by the Committee has been used for calculation of PLB from 2014-15 to 2019-20.

Background:

Railways were the first departmental undertaking of the Government of India wherein the concept of PLB was introduced in the year 1979-80. The main consideration at that time was the important role of the Railways as an infrastructural support in the performance of the economy as a whole. In the overall context of Railway working, it was considered desirable to introduce the concept of PLB as against the concept of Bonus on the lines of ‘The Payment of Bonus Act -1965’. Even though the Payment of Bonus Act does not apply to the Railways, yet the broad principles contained in that Act were kept in view for the purpose of determining the “Wage/Pay Ceiling”, definition of ‘Salary’/’Wage’, etc. The PLB Scheme for the Railways came into force from the year 1979-80 and was evolved in consultation with the two recognized Federations namely, All India Railwaymen’s Federation and National Federation of Indian Railwaymen and with the approval of the Cabinet. The scheme envisages a review every three years.

PIB

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