Diwali Bonanza! Union Cabinet Likely To Approve Productivity-Linked Bonus For Railway Employees Ahead Of Festive Season: Report

New Delhi: Ahead of the Diwali, railway employees are expected to receive a productivity-linked bonus as the Centre is likely to approve the proposal in this regard in the Union Cabinet meeting, which is scheduled to take place on Wednesday, reported India Today, citing government sources.

The bonus is aimed at rewarding employees based on their performance and productivity metrics. The government is yet to make an official announcement in this regard.

Once approved, the bonus will provide a major financial boost to lakhs of railway employees across the nation ahead of the festive season. The bonus means higher disposable income to buy durable goods, electronics, and other items, which will in turn help in providing a thrust to the economic activity.

In 2024, around 11 lakh employees reportedly received the bonus.

Earlier on September 22, the Centre's new Goods and Services Tax (GST) reforms came into effect, providing a major relief to people. The significant change is the slashing of the 12 per cent and 28 per cent slabs, making goods cheaper and easing the burden on consumers.

The government has kept a 40 per cent slab for luxury and sin goods, making items like tobacco, pan masala, cigarettes, bidis, sugary aerated drinks, luxury vehicles, high-end bikes above 350cc, yachts, and helicopters costlier.

In his letter on the first day of Navaratri, Prime Minister Narendra Modi urged citizens to embrace the spirit of self-reliance by choosing Made-in-India products. He expressed confidence that these reforms, along with income tax cuts, will not only ease the financial burden on households but also strengthen India’s journey towards becoming a developed nation by 2047.

Published on: Wednesday, September 24, 2025, 12:29 PM IST