Over 12.60 lakh (1.26 million) non-gazetted Railway employees will benefit from a decision by the Union Cabinet on Friday to give the highest ever productivity linked bonus equivalent to 78 days' wages to them this festival season.

Information and Broadcasting Minister Ambika Soni said the Union Cabinet has accepted the proposal of the Ministry of Railways for payment of PLB equivalent to 78 days' wages for 2010-11 for all eligible non-gazetted Railway employees.

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The decision is likely to benefit 12.61 lakh non-gazetted Railway employees, she said.

"The financial implication of payment of 78 days' PLB to railway employees has been estimated at Rs 1,098.58 crore (Rs 10.98 billion).

"The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is Rs 3,500 per month," she told reporters after the Cabinet meeting.

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"This will be the highest productivity-linked bonus ever to be made by the Railways. Payment of PLB to eligible railway employees is made each year before the Dusshera holidays.

"The decision of the Cabinet shall be implemented before the holidays," Soni said.

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Last year, the Railways had given 77-day bonus to as many employees. Though there are a total of 13.26 lakh (1.32 million) railway employees, 126,000 are not covered under the PLB.

"PLB is based on the productivity indices reflecting the performance of the Railways and its payment is expected to motivate the employees for working towards improving the same in future," Soni said.