Finance Ministry, Railways issue guidelines on disbursement of bonus

Our Bureau New Delhi | Updated on October 22, 2020 Published on October 22, 2020

The PLB per eligible railway employee is equivalent to 78 days’ emoluments

The Finance Ministry and Railways, in separate communication to non-gazetted employees, have listed the guidelines on payment of ad hoc and performance-linked bonus.

Non-gazetted employees, who are not covered under any other bonus or ex-gratia scheme in various Central Government Ministries and Departments, will get the ad hoc bonus. Non-gazetted employees in Railways will get productivity-linked bonus (PLB). There will be a similar arrangement of productivity-linked bonus for non-gazetted employees in defence, EPFO, ESIC etc. The Cabinet on Wednesday approved a total payout of over ₹3,700 crore under these two schemes which will benefit over 31 lakh employees.

Ad hoc bonus

The Finance Ministry, in an office order, said that the ad hoc bonus payout will be equivalent to 30 days’ emoluments for FY20. It will be paid to Group B and Group C non-gazetted employees. The ceiling for the payment of ad hoc bonus will be a monthly emolument of ₹7,000.

One of the key conditions for eligibility is at least six months of continuous service during FY20. Eligible employees are allowed pro-rata payment for continuous service during the year from six months to full year. E

mployees appointed on purely temporary/ad-hoc basis are eligible, subject to fulfilling the condition of six months of continuous service from March 31, 2020, without a break.

Employees on deputation/foreign services terms to the State Government, UT Government, PSU etc will not be part of this scheme. However, they can get bonus, if there is any such policy in the borrowing organisations.

Contract employees can also get the bonus, provided they are eligible for benefits such as Dearness Allowance and interim benefit. If these benefits are not available, then the bonus will be on par with causal labour.


About 11.58 lakh non-gazetted employees of Railways will get bonus equivalent to 78 days’ wages for FY20. The financial implication of payment of 78 days’ PLB to railway employees has been estimated at ₹2,081.68 crore. The wage calculation ceiling prescribed for the payment of PLB to eligible employees is ₹7,000 per month.

The amount payable per eligible employee is ₹17,951 for 78 days. The PLB in Railways covers all non-gazetted employees (excluding RPF/RPSF personnel) who are spread across the country. Payment of PLB to eligible railway employees is made each year before the Dusshera/Puja holidays.

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Published on October 22, 2020
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