The decision on June 28, 2026 came from the cabinet, equating to 78 days of wages for 1.14 million non‑gazetted staff across 11 categories. Maximum award per worker: Rs 17,951. Railway Minister Ashwini Vaishnaw said the payment acknowledges the sector’s record freight and passenger volumes—1,670 million tonnes of freight and 7.41 billion passengers in 2025‑26—and aims to sustain morale before the festive Durga Puja and Dussehra holidays.
This is the largest bonus since 2024‑25, when railways received a Rs 1,500 crore incentive. Vaishnaw added that the payout reflects the 88 % on‑time performance improvement last year.
Payments will begin on July 15, with electronic transfers to 1.14 million accounts and paper vouchers for those without banking access—an effort to ensure no one is left out. A station master in Jaipur’s Chandni Chowk station, Rajesh Kumar, said the bonus will help him buy a new set of track maintenance tools for his crew.
Employees are already lining up at regional offices to validate their eligibility, and union leaders expect the payout to lift morale during the holiday rush. The Ministry of Railways will audit the disbursement in August to flag any irregularities. The railways’ performance metrics—peak freight loading and passenger numbers—have driven the cabinet’s decision.