Production Linked Bonus for Railway Employees equivalent to 78 days’ wages for FY 2011-2012 approved by Cabinet & Order issued

Cabinet 18-October, 2012
Production Linked Bonus for Railway Employees 
The Union Cabinet today approved the proposal of the Ministry of Railways for payment of Productivity Linked Bonus (PLB) equivalent to 78 days` wages for the financial year 2011-2012 for all eligible non-gazetted railway employees. 
The financial implication of payment of 78 days` PLB to railway employees has been estimated to be Rs.1021.56 crore. The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is Rs. 3500/- per month. 
About 12.37 lakh non-gazetted railway employees are likely to benefit from the decision. 
Payment of PLB to eligible railway employees is made each year before the Dusshera/Puja holidays. The decision of the Cabinet shall be implemented before the holidays for this year as well. 

The salient features of the PLB scheme evolved as a result of review of the scheme and approval of the Cabinet on 23.9.2000 are as under: – 
a) The output for a year is reckoned by the equated net tonne kilometres by adding together: – 

i) total goods revenue net tonne kilometres.
ii) non-suburban passenger kilometres converted by a factor of 0.076.
iii) suburban passenger kilometres converted by a factor of 0.053. 

b) The 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 principle, 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 capital, c) The ratio of the output to the input is the productivity index for the year. 
Railways were the first departmental undertaking of the Government of India where 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 1979-80 onwards, and was evolved in consultation with the two recognised federations viz. the 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. 


(Release ID :88513)

Text of Railway Order RBE No. 118/2012 No. E(P&A)I1-2012/PLB-4 dated 18.10.2012 reproduced here:-

RBE No. 118 / 2012.

No. E(P&A)I1-2012/PLB-4

New Delhi, dated : 18.10.2012.

The General Managers/CAOs,
All Indian Railways & Production Units etc.
(As per mailing lists No.1 & 2).

Subject : Payment of Productivity Linked Bonus to all eligible non-gazetted Railway employees for the financial year 2011-2012.

     The President is pleased to sanction Productivity Linked Bonus (PLB) equivalent to 78 (Seventy Eight) days wages without any ceiling on wages for eligibility for the financial year 2011- 12 to all eligible non-gazetted Railway employees (excluding all RPF/RPSF personnel). Where wages exceed 3500/- per month, Productivity Linked Bonus will be calculated as if ‘wages’ are 3500/- p.m.
2. ‘Wages’ for the purpose of calculating Productivity Linked Bonus shall include ‘Basic pay’ as defined in the Railway Services (Revised Pay) Rules, 2008 and dearness allowance drawn during the financial year 2011-12. Other conditions of eligibility, method of calculation of wages, etc., as prescribed in this Ministry’s instructions and clarifications issued from time to time, shall remain unchanged.
3. It has also been decided that in the case of eligible employees mentioned in Para 1 above who were not placed under suspension, or had not quit service/retired/expired during the financial year 2011-12 or were on leave where leave salary admissible is not less than that admissible on leave on average pay, may be paid an amount of 8975/- towards Productivity Linked Bonus for the financial year 2011-12. In the case of employees other than those mentioned above, the amount of Productivity Linked Bonus may be calculated in accordance with the extant instructions on the subject.
4. Further, in relaxation to the provisions in Rules 905(2), 908 and 909 of State Railway Provident Fund Rules, as contained in Chapter 9 of R-I/1985 edition (2003 Reprint edition), such of the subscribers to the SRPF as are entitled to Productivity Linked Bonus may, if they so desire, deposit the whole or part of the amount admissible under the Scheme in their respective State Railway Provident Fund Accounts.
5. Disbursement of Productivity Linked Bonus for the financial year 2011-12 to all eligible non-gazetted Railway employees mentioned in Para 1 above should be made on priority and may be paid in Cash/ECS as per the salary mode before the ensuing Puja/Dussehra holidays.
6. This issues with the concurrence of Finance Directorate of the Ministry of Railways.

( Shankar)
Railway Board.

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