The Union cabinet on Wednesday approved a productivity-linked bonus equivalent to 78 days’ wage to eligible non-gazetted railway employees.

The bonus for the financial year 2020-21 will benefit about 11.56 lakh employees.

An expenditure of nearly Rs 1,985 crore will be incurred to pay the bonus. The bonus is usually announced ahead of Dussehra and Pujas.

The wage calculation ceiling prescribed for the payment of the bonus is Rs 7,000 per month.

The maximum amount payable per eligible railway employee is Rs. 17,951 for 78 days.

Railway Board chairman and chief operating officer Suneet Sharma said that the bonus will be disbursed as usual before Dussehra.

He said that the railways had also taken care of the kin of the personnel who had died from the coronavirus.

Over 2,800 people have been given jobs on compassionate grounds, Sharma said.

In case the children of those who have died are minors, they will be eligible to get a railway job once they turn 18. Around 3,256 rail officials have died due to Covid-19 since March 2020.

The productivity-linked bonus covers all non-gazetted railway employees (excluding RPF/RPSF personnel).

Last year, Indian Railways had also disbursed a bonus of 78 days’ wage after the cabinet had approved productivity and non-productivity-linked bonus for 2019-2020 to more than 30 lakh PSU staff.