New Delhi: Ahead of Diwali, railway employees are set to receive a productivity-linked bonus as the Centre is likely to approve the proposal during the Union Cabinet meeting scheduled for Wednesday, according to India Today, citing government sources.
The bonus aims to reward employees based on their performance and productivity metrics. Although the government has yet to make an official announcement, once approved, the bonus will provide a significant financial boost to lakhs of railway employees across the nation ahead of the festive season.
This additional income means higher disposable funds for purchasing durable goods, electronics, and other items, which is expected to give a boost to economic activity.
In 2024, around 11 lakh railway employees reportedly received the productivity-linked bonus.
Separately, on September 22, the Centre implemented new Goods and Services Tax (GST) reforms, offering major relief to consumers. These reforms include the reduction of the 12 percent and 28 percent GST slabs, making goods cheaper and easing the financial burden on the public.
However, the government has retained a 40 percent GST slab for luxury and sin goods. This makes items such as tobacco, pan masala, cigarettes, bidis, sugary aerated drinks, luxury vehicles, high-end bikes above 350cc, yachts, and helicopters more expensive.
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.
https://www.freepressjournal.in/india/diwali-bonanza-union-cabinet-likely-to-approve-productivity-linked-bonus-for-railway-employees-ahead-of-festive-season-report