The Union Cabinet approved a productivity-linked bonus of Rs 1,866 crore for railway employees ahead of Diwali 2025. The decision will benefit 10.90 lakh non-gazetted staff working across different categories. Officials confirmed that the bonus will recognise the efforts of employees in improving efficiency and performance of India’s railway network.
Last year, nearly 11 lakh workers received a similar payout, which boosted morale and encouraged festive spending. This year’s bonus is expected to bring the same positive results for railway families and contribute to household income during the festival season.
Bonus Covers Group C and D Staff
According to the government, the bonus will cover Group C and Group D category employees, including track maintainers, loco pilots, guards, station masters, supervisors, technicians, helpers, pointsmen, and other ministerial staff. Around 11.5 lakh workers will directly benefit from this decision.
The bonus amount will be transferred directly to employees’ bank accounts, with payments expected to start soon. Officials explained that railway staff receive this productivity-linked bonus every year as recognition for their contribution to operations. The latest approval has brought relief and happiness to families across the country ahead of Diwali celebrations.
Positive Impact on Market Demand
Experts said the Diwali bonus will increase household consumption, which can improve market activity during the festive season. Employees often use the payout to buy electronics, clothes, household goods, and festive items. Businesses are expecting higher sales as a result of this inflow of money.
The bonus coincides with recent GST rate cuts, which are also expected to boost demand in different sectors. Markets in both urban and semi-urban areas are likely to witness strong sales, as railway staff form a large consumer base across India. Traders and retailers anticipate higher footfall during the festive weeks.
Economists pointed out that festive-linked payouts like the railway bonus have a multiplier effect on the economy. With inflation currently under control and consumer confidence rising, the bonus will likely support demand in the final quarter of the year. The government is closely monitoring spending patterns as it balances fiscal discipline with growth requirements. Officials believe that recognising railway employees’ hard work with timely financial benefits will strengthen both morale and economic activity. The Rs 1,866 crore bonus is being seen as a major festive push to support India’s broader consumption-driven growth story.
Swastika Sruti is a Senior Sub Editor at NewsX Digital with 5 years of experience shaping stories that matter. She loves tracking politics- national and global trends, and never misses a chance to dig deeper into policies and developments. Passionate about what’s happening around us, she brings sharp insight and clarity to every piece she works on. When not curating news, she’s busy exploring what’s next in the world of public interest. You can reach her at [swastika.newsx@gmail.com]
