The Indian Railways would give a Productivity-Linked Bonus (PLB), equivalent to 70 days wages, to around 13.30 lakh eligible, non-gazetted employees for the financial year 2006-07. The proposal was cleared by the Union Cabinet on Thursday.

“Giving this bonus to non-gazetted officials of Group C and D would entail an expense of Rs 666 crore. The 70-day bonus will roughly translate into Rs 5,800 for most of the eligible employees,” a Railway Ministry official said, adding that the bonus would be handed out before Dussehra.

The Railways incurred an expenditure worth Rs 624 crore last year when it gave PLB equivalent to 65 days wages to its non-gazetted officials. “While raising the ceiling of this bonus from Rs 2,500 per month to Rs 3,500 per month has been okayed by the Cabinet, it will need to be formalised through either a Bill or an Ordinance in Parliament,” the official added.

Currently, the ceiling of bonus is Rs 2,500 per month which translates into Rs 5,800 for 70 days.