Union Cabinet today approved the proposal of the Ministry of Railways for
payment of Productivity Linked Bonus (PLB) equivalent to 75 days’ wages for
the financial year 2008-2009 for all eligible non-gazetted Railway employees
(excluding RPF/RPSF personnel).
salient features of the PLB scheme evolved as a result of review of the scheme and
approval of the Cabinet on 23.09.2000 and applied for making payment for the
financial years 1998-99, 1999-2000, 2000-01 and 2001-02 are as under :-
output for a year is reckoned by the
equated net tonne kilometres by
goods revenue net tonne kilometres.
passenger kilometres converted by a factor of 0.076.
passenger kilometres converted by a factor of 0.053.
input is taken as the non-gazetted staff strength (excluding RPF/RPSF
personnel), increased by the incremental increase/decrease in capital during
the year. Incremental capital is
confined to Rolling Stock utilised for movement of trains. The measurement of capital is in terms of tractive effort (Diesel Electric &
Electric) for Locomotives, carrying
capacity for Wagons and seating capacity for Coaches. The tractive effort of locomotives and carrying capacity of
Wagons/Coaches together are given equal weight.
The relative weight of wagons and coaches is determined on the basis of
ratio of goods train kilometres and
passenger train kilometres in the
total train kilometres.
Based on this principal, the relative weights are 0.50 for Tractive
Effort, 0.20 for Wagon Capacity and 0.30 for Seating Capacity. Thus, the
percentage increase in Tractive Effort over the
base year is multiplied by 0.50; similarly the percentage increase in Wagon Capacity and
Seating Capacity is multiplied by 0.20 and 0.30 respectively and added up to
arrive at the total percentage increase in capital. The labour input i.e. non-gazetted staff strength
is then increased to the extent of this percentage increase in the incremental
ratio of the output to the input is the productivity index for the year.
were the first departmental undertaking of the Government of India wherein the
concept of PLB was introduced. The main
consideration at that time was the important role of the Railways as an
infrastructural support in the performance of the economy as a whole. In the
overall context of Railway working, it was considered desirable to
introduce the concept of PLB as against the concept of Bonus on the lines of ‘The
Payment of Bonus Act – 1965’. Even
though the Payment of Bonus Act does not apply to the Railways, yet the broad
principles contained in that Act were kept in view for the purpose of
determining the “Wage/Pay Ceiling:, definition of ‘Salary’/’Wage’, etc. The PLB Scheme for the Railways came into
force from the year 1979-80 onwards and was evolved in consultation with the
two recognised federations viz. All India Railwaymen’s Federation and
National Federation of Indian Railwaymen and with the approval of the
Cabinet. The scheme envisages a review
every three years.
Implementation Strategy and targets:
Central Pay Commission in para 4.4.5 of their report had recommended that all
Departments should ultimately replace the existing productivity linked bonus
schemes with Performance Related Incentive Scheme (PRIS) and also that in
places where PLB is applicable and it is not found feasible to implement PRIS
immediately, the existing productivity linked bonus schemes may be continued in
a modified manner where the formula for computing the bonus has a direct nexus
with the increased profitability/productivity under well-defined financial
parameters. In respect of the Railway’s PLB scheme, the VIth CPC in Para 4.412 of their report have
opined that a new formula for computing PLB that is based on financial
parameters and where profit is computed
as per the established principles of commercial accounting, wages with
appropriate adjustments for increases, the impact of the capital investment,
element of subsidy, etc. needs to be devised in case the PRIS is not
implemented immediately in Ministry of Railways.
Government on the said recommendations of the Sixth CPC relating to the PLB schemes has decided to examine the
same separately. However, the recommendation regarding PRIS
has been accepted by the Government.
Thus individual Ministries/Departments are required to devise PRIS in
accordance with their own organizational structure and need as per guidelines
to be issued by the nodal Ministry.
Since no guidelines on PRIS have been received so far and as such PLB scheme is to continue till
introduction of PRIS.
will be the highest PLB payment ever to be made by Railways. PLB is based on the productivity
indices reflecting the performance of the Railways.
financial implication of payment of 75 days’ PLB to
railway employees has been estimated to be Rs.889 crores. The wage calculation ceiling prescribed for
payment of PLB to the eligible non-gazetted
railway employees (excluding RPF/RPSF personnel) is Rs.3500/- p.m.
Number of beneficiaries:
About 13.05 lakh non-gazetted Railway employees are likely to benefit from
(Release ID :52691)