The Railway Employees Union has demanded a productivity-linked bonus based on the recommendations of the 7th Pay Commission. The union argues that the current PLB is unfair because it is based on an outdated minimum salary.
New Delhi: The Indian Railway Employees Federation (IREF) has written to the railways demanding an increase in the productivity-linked bonus (PLB) that workers receive every year before the festive season. The railways pay a PLB equivalent to 78 days’ wages to all non-gazetted employees (Group C and Group D) to incentivize them to increase productivity and ensure safety. The PLB is calculated based on the minimum salary paid to the lowest-grade (Group D) employees, as per a report in news agency PTI.
Railway Employees Union Demands Productivity-Linked Bonus
The Indian Railway Employees Federation (IREF) has argued that although the railways implemented the recommendations of the 7th Pay Commission on January 1, 2016, the productivity-linked bonus (PLB) is still calculated and paid based on the minimum salary fixed by the 6th Pay Commission.
Current Salaray As Per 6th Pay Commission
The minimum salary for Group D employees increased from Rs 7,000 to Rs 18,000 under the 7th Pay Commission. However, the productivity-linked bonus (PLB) for all Group C and Group D employees is still calculated based on the minimum salary of Rs 7,000. This means that all Group C and Group D employees receive a PLB of Rs 17,951, regardless of their actual salary.
The Indian Railway Employees Federation (IREF) has demanded that the PLB be increased to Rs 46,159, which is based on the minimum salary of Rs 18,000 under the 7th Pay Commission. The IREF argues that this increase is justified given the important role that railway workers play in the Indian economy.
“During Covid-19, when a countrywide lockdown was imposed and people were scared to come out of their houses, railway employees risked their lives and kept the train operations on even if they had to face extremely unfavourable circumstances,” the Federation said in its letter.
7th Pay Commission: Expected DA Hike
The Indian government is likely to announce a hike in Dearness Allowance (DA) for all central government employees and pensioners soon. The hike is expected to be between 3% and 4%, and will be effective from July 1, 2023, as per a Economic Times report
The DA hike will be a welcome move for central government employees, as it will help to offset the rising cost of living. The DA is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), and is revised twice a year, in January and July.