Railways Employee Demand Incentives Based On 7th Pay Commission

Ahead of the Dussehra festival, a group of Indian railway employees has requested a revision in their annual productivity-linked bonus (PLB) calculations. They are urging the government to base the bonus on the Seventh Pay Commission, instead of the outdated Sixth Pay Commissionwhich they argue is unjust and fails to reflect their current salaries.

The Case for Revision

In a letter addressed to Union Minister Ashwini Vaishnaw, Sarvjeet Singh, the National General Secretary of the Indian Railways Employee Federation (IREF), pointed out that the current PLB is calculated based on the Sixth Pay Commission’s minimum salary of Rs 7,000 per month. However, since January 1, 2016, railway employees have been receiving a minimum salary of Rs 18,000 under the Seventh Pay Commission.

Singh stated, “Calculating the PLB using the Rs 7,000 minimum salary is a clear injustice and exploitation of railway employees.” He emphasized that the bonus should be aligned with the updated pay scale to reflect the employees’ real earnings.

Covid-19 Contributions and Rising Concerns

The IREF highlighted the significant contributions of railway employees during the Covid-19 pandemic. Despite the nationwide lockdowns and public fears, railway staff ensured uninterrupted train operations, contributing to increased railway earnings, as reflected in quarterly reports. The federation argued that employees should be rewarded fairly for their dedication.

According to government guidelines, railway employees are entitled to a PLB equivalent to 78 days’ salary. However, the current payment amounts to Rs 17,951, based on a Rs 7,000 monthly salary, which does not reflect the actual earnings of any railway employee. Singh pointed out that the correct PLB calculation, based on the Rs 18,000 minimum salary, should be Rs 46,159.

A Plea for Justice

The IREF concluded by urging the government to revise the PLB calculations according to the Seventh Pay Commission. “This revision would allow railway employees to celebrate the upcoming festival of Dussehra with joy and continue their vital contributions to railway operations,” Singh stated, hoping for swift government action.


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