7th Pay Commission: Govt Announces Payment of Productivity Bonus For These Employees

For the fiscal year 2020-21, the Union Cabinet has authorised a Productivity Linked Bonus (PLB) of 78 days' wages for all qualified non-gazetted Railway personnel. The decision is expected to benefit about 11.56 lakh non-gazetted Railway employees and all non-gazetted Railway employees, except Railway Protection Force (RPF), Railway Protection Special Force (RPSF) members, are eligible for the Productivity Linked Bonus (PLB), which is equivalent to 78 days pay without any wage cap for the financial year 2020-21. If monthly wages surpass Rs 7000 per month, the Productivity Linked Bonus (PLB) will be determined as if the wages are Rs 7000 per month.

The Ministry of Railways has also clarified that "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 the Ministry's instructions and clarifications issued from time to time, shall remain unchanged."

The Ministry has now declared that eligible employees who were not placed on suspension, had not quit service, retired, or expired during the financial year 2020-21, or were on leave where the leave salary admissible is not less than the leave salary admissible on average pay, shall be paid an amount of Rs 17,951 as Productivity Linked Bonus for the financial year 2020-21. Employees who are not specified above may have their Productivity Linked Bonus computed according to the official regulations.

In addition, in accordance with Rule 905(2), 908, and 909 of the State Railway Provident Fund (SRPF) Rules, subscribers to the SRPF who are eligible for Productivity Linked Bonus may contribute the entire or part of the amount permitted under the Scheme in their respective State Railway Provident Fund Accounts, according to the Ministry.

The Ministry has also specified that the payment of Productivity Linked Bonus to all eligible non-gazetted Railway Employees for the financial year 2020-21 shall be done on a priority basis in the same manner as salary settlement before the Puja/Dussehra holidays.

The Ministry of Railways has further added that "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."