Cabinet may approve bonus for railway employees today

In a festive bonanza to over 12 lakh non-gazetted railway employees, the Union Cabinet is likely to approve the payment of productivity linked bonus for them on Wednesday.

The Cabinet chaired by Prime Minister Narendra Modi is expected to meet at 10.30 am.

The bonus, the sources said, will be equivalent to 78 days of wages for the eligible non-gazetted railway employees for the financial year 2016-17.

This does not include the employees of the Railway Protection Force (RPF) and Railway Protection Special Force (RPSF). The approval entails a financial implication of approximately Rs 2,090.96 crore, said a release.

Each eligible employee is expected to get a maximum of about Rs 18,000 as the productivity-linked bonus, sources said.

The move, which comes ahead of Assembly elections in five states, will cost the exchequer over Rs 2,000 crore.

The Cabinet may also take up the proposal of closing a non-viable state-owned jute company, sources said.