Central Govt Approves PLB Bonus for Railway Employees for 2023
Declaration of DA, PLB and Ad-Hoc Bonus: Demand CG Employees Union to Finance Minister
Ref: Confd. Bonus-DA-DR/2023
Dated — 06.10.2023
To
Smt. Nirmala Sitharaman
Hon’ble Finance Minister
Government of India
Ministry of Finance
North Block, New Delhi – 110001
Sub: DECLARATION OF DA/DR, PLB AND ADHOC BONUS – REG.
Respected Madam,
I would like to bring to your kind attention towards non declaration of the due installment of DA/ DR w.e.f. from 01-07-2023, normally it used to be declared in the last week of September and three months arrears paid in first week of October.
Severe discontent is there amongst employees and pensioners, over the delay in Announcement of the same.
Similarly, Durga Puja festival is approaching and the PLB and Adhoc Bonus too, are to be declared.
The Confederation seeks your immediate intervention in the above matter and request you to kindly cause the Declaration/Issuance of DA/ DR order’s and the Bonus order’s, timely.
With profound regards
Yours Sincerely
(S.B. Yadav)
Secretary General
Source: Confederation
The Indian Railway Employees Federation (IREF) has Demand requested an increase in the productivity-linked bonus (PLB) for railway workers ahead of the festive season. The PLB is currently equivalent to 78 days’ wages and is given to non-gazetted employees as an incentive. The IREF argues that the PLB is still calculated based on the minimum salary fixed by the 6th Pay Commission, while the 7th Pay Commission increased the minimum salary to Rs.18,000.
The Expected Central Government Approved the Payment of Productivity Linked Bonus (PLB), which is Equivalent to 78 Days of Wages to Indian Railway Employees for the Financial Year 2022-2023.
78 Days Bonus for Railway Employees Calculation?
The financial implication of payment of 78 days’ PLB to Railway Employees has been Estimated to be Rs.1,832.09 crores. The wage calculation ceiling prescribed for payment of PLB is Rs.7,000/- p.m. The Maximum Amount payable per eligible railway employee is Rs.17,951 for 78 days.
Productivity Linked Bonus (PLB) for Railway Employees 2023
Equivalent to 78 days wages to eligible Non-Gazetted Railway employees
- Payment before Dussehra/Puja Festival Season
- 11.27 lakh Non-Gazetted Railway employees likely to benefit the Bonus
- Incentive to Improve Productivity and Efficiency of Indian Railways.
Hon’ble Prime Minister Shri Narendra Modi has given approval to pay Productivity Linked Bonus (PLB) equivalent to 78 days wages to eligible non-gazetted railway employees (excluding RPF/RPSF personnel) for the financial year 2022-23. About 11.27 lakh non-gazetted Railway employees are likely to benefit from the decision. This payment will be made before Dussehra/Puja holidays, bringing smile to lakhs of families ahead of the festive season.
The Railway employees have played important role in performance of Passenger & Goods services which also acted as catalyst for the economy. In fact, Railway employees ensured uninterrupted movement of essential commodities like food, fertilizer, coal and other items even during the lockdown period. Railways has ensured there is no shortage of such commodities in the area of operations.
Railways in past 3 years have undertaken series of steps to regain market share in freight and increase realization in passenger fares through suitable policy initiatives. As a result, in the current year (2022-23), Railways have re gained the momentum in receipts, disrupted previously due to the pandemic. In F.Y. 2021-22 Railways achieved incremental freight loading of 184 million tonnes which is highest ever (Total 1418 million tonnes). The payment of PLB would serve as an incentive and result in motivating a large number of Railway employees, particularly those involved in execution and operations of railways, to improve their productivity and ensure safety, speed and service for Railway customers. The payment of PLB will also boost the demand in economy in upcoming festival season.
What is the Productivity Linked Bonus for PLB?
Agreement signed between the Railway Board and the two Federations(All India Railwaymen’s Federation and National Federation of Indian Railwaymen) on 22 nd November, 1979, states that.
Discussions have been held since August 1979 with the representatives of the Railwaymen to see if any solution can be found to this problem since the railway employees are not covered by the Payment of Bonns Act, the Railways being a departmental undertaking. The chief consideration borne in the mind was the important role of the Railways as an infrastructural activity in the performance of the economy as a whole. Having regard to this, it was felt by the Government that any solution to the problem would have to stress higher productivity on the part of the railwaymen which in turn would result in better performance by the Railways. This line of thought suggested the desirability of , accepting the concept of productivity-linked bonus in lieu of bonus on the lines of Payment of Bonus Act. After discussion held in a very cordial manner, the representatives of All India Railwaymen’s Federation and National Federation of Indian Railwaymen responded in a spirit of coordination to the Government’s suggestion for accepting the concept of Productivity Linked Bonus.
“The Indian Railways are a departmental undertaking of the Government of India and as such, are excluded from the purview of Payment of Bonus Act. The Railwaymen have, however, been representing for a long time that being industrial employees they should be covered by the Payment of Bonus Act and paid bonus accordingly.
This PLB Scheme was accepted by the two Federations (NFIR & AIRF) when Government of India represented by Railway Board have accepted this scheme. The scheme having been evolved by an agreement between the two recognised Federations and the Railway Board bilaterally, is reviewed periodically.
During the year 1995, the Federation insisted that the rate of PLB should be enhanced upward from Rs.1600/-. The Government have considered and revised the rate from Rs.1600 to Rs.2500 on 20-9-995 through an Ordinance.
Salary Eligibility Ceiling in PLB Bonus?
As the Government had imposed salary eligibility ceiling for payment of PLB, vital categories viz., Drivers, Station Masters, Guards, Section Controllers, Section Engineers, etc., were not covered by the norms. Thus they were denied payment of PL Bonus. These categories are directly related to freight and passenger movement and equally responsible to increase of productivity. Salary Eligibility ceiling had resulted in a discriminatory treatment, while one section of workers were paid bonus, the other section were denied the same.
The Federation took up the matter with the Railway Ministry and demanded that the discrimination should end and payment of bonus should be ensured to all group ‘C’ and ‘D’ employees of Indian Railways. As the Government had not responded to the genuine demand, the Federation had taken a decision to launch agitation and accordingly mass Dharnas, Hunger Strike, Demonstrations were held by NFIR Unions during the period September, 1996 and as a follow up action in support of demand, the Federation rank and file had undertaken FAST on 2 nd October, 1996 – Mahatma Gandhi Birth Day – at all important places on Indian Railways. The Federation also warned the Railway Ministry that agitation would be intensified paralysing services if the bonus is not paid to all Group ‘C’ and ‘D’ employees irrespective of their salaries.
Sensing the grave situation developing on Indian Railways, the Cabinet met on 17 th October, 1996 and decided to remove salary eligibility ceiling paving the way for payment of PLB to all Group ‘C’ and ‘D’ employees. This is one of the historic achievements to the credit of NFIR.
How to Calculate PLB Bonus for Railway Employees?
The wage calculation ceiling prescribed for payment of PLB is Rs.7,000/- p.m. The Maximum amount payable per Eligible Railway Employee is Rs.17,951 for 78 days.