8th Pay Commission & Railway PLB 2025-26: IRTSA Demands Higher Bonus Ceiling, ₹28,722 PLB and Removal of Pay Level 2+ Ceiling
8th Pay Commission & Railway PLB 2025-26: IRTSA Demands Higher Bonus Ceiling, ₹28,722 PLB and Removal of Pay Level 2+ Ceiling
IRTSA memorandum seeks revision of the 11-year-old ₹7,000 PLB ceiling and calculates a bonus of ₹28,722 for 2025-26 based on 60% DA.
The Indian Railways Technical Supervisors' Association (IRTSA) has submitted a memorandum seeking major changes in the Productivity Linked Bonus (PLB) calculation for non-gazetted Railway employees. In its memorandum dated 8 September 2026, IRTSA has requested revision of the existing PLB calculation ceiling and removal of the ceiling for employees working in Pay Level-2 and above.
The association has argued that the existing monthly emolument ceiling of ₹7,000, fixed in 2016, has remained unchanged for 11 years and does not reflect the increase in the 7th Central Pay Commission pay structure or Dearness Allowance (DA).
According to the memorandum, if the increase in DA is taken into account, the PLB amount for 2025-26 would work out to ₹28,722, instead of the existing PLB amount of ₹17,951.
- Addressed to: Smt. Nirmala Sitharaman (Finance Minister) and Shri Ashwini Vaishnaw (Railways Minister)
- Memorandum No.: IRTSA/Memo-33
- Date: 08 September 2026
- Subject: PLB for non-gazetted Railway employees, FY 2025-26
- Reference: Railway Board Order No. E(P&A)II/2015/PLB-4 (RBE No.109/2016), dated 15 September 2016
What Is the Existing Railway PLB Ceiling?
Under the existing arrangement referred to in the memorandum, the monthly emolument ceiling for calculating PLB is ₹7,000. IRTSA has pointed out that this ceiling was fixed in FY 2014-15 and subsequently continued under the Railway Board's 2016 order.
The association argues that the ceiling has not kept pace with:
- 7th CPC Pay Matrix revisions
- Increase in basic pay
- Successive increases in DA
- Changes in productivity
- Increase in the cost of living
- Changes in Railway employees' pay levels
According to IRTSA, the PLB amount has remained at ₹17,951 for 11 consecutive years despite substantial increases in DA.
IRTSA Calculates PLB of ₹28,722 for 2025-26
One of the major points raised in the memorandum is the calculation of PLB by taking the increase in DA into account. The association has provided a year-wise calculation:
| Financial Year | DA Rate | PLB in Proportion to DA |
|---|---|---|
| 2014-15 | 6th CPC | ₹17,951 |
| 2015-16 | 7th CPC DA reset to zero | ₹17,951 |
| 2016-17 | 4% | ₹18,669 |
| 2017-18 | 7% | ₹19,208 |
| 2018-19 | 12% | ₹20,105 |
| 2019-20 | Rates frozen | ₹20,105 |
| 2020-21 | Rates frozen | ₹20,105 |
| 2021-22 | 34% | ₹24,054 |
| 2022-23 | 42% | ₹25,490 |
| 2023-24 | 50% | ₹26,927 |
| 2024-25 | 55% | ₹27,824 |
| 2025-26 | 60% | ₹28,722 |
IRTSA has therefore stated that if the 60% DA increase is taken into account, PLB for 2025-26 would be ₹28,722. Importantly, this is an amount calculated and demanded by the association in its memorandum, not an announced revision of PLB by the Government or Railway Board.
IRTSA Says ₹17,951 PLB Has Become Outdated
IRTSA has argued that continuing to pay ₹17,951 as PLB for such a long period has effectively disconnected the bonus from changes in inflation and DA.
The association has calculated that even if the original ₹7,000 ceiling were retained, the PLB corresponding to successive increases in DA would have been substantially higher — for example, the PLB corresponding to the 55% DA rate for 2024-25 would have been ₹27,824, and for 2025-26, using the 60% DA figure cited in the memorandum, the corresponding amount would be ₹28,722.
IRTSA Cites Increase in Railway Productivity
Another important argument in the memorandum relates to Railway productivity. IRTSA has compared freight output and non-gazetted staff strength between 2014-15 and 2024-25.
- Net tonne kilometres for freight increased by 42.32%
- Freight output increased from 6,82,612 million net tonne km to 9,71,460 million net tonne km
- Non-gazetted staff strength declined by 7.32% (from approx. 13.26 lakh to 12.99 lakh)
- The output-input ratio increased by 53.55%
Based on this productivity comparison, IRTSA has stated that the PLB amount could have been ₹27,564 if the increase in net tonne kilometres had been proportionately reflected in the PLB. This forms another basis for the association's demand for revision of the existing PLB calculation mechanism.
PLB Calculation Based on 78 Days
IRTSA has also highlighted the relationship between the minimum Pay Level-1 basic pay and the number of days used for PLB calculation. According to the memorandum, the entry pay for the lowest grade of Pay Level-1 in Railways is ₹18,000 with effect from 1 January 2016.
The association's calculation: ₹18,000 × 78 days ÷ 30.4 average days per month = ₹46,184.
Thus, based on the current minimum basic pay of ₹18,000 and 78 days, the PLB amount would theoretically be ₹46,184 if the full basic pay were considered rather than the existing ₹7,000 ceiling. This calculation is presented by IRTSA to highlight the gap between the current statutory/calculation ceiling and the present minimum pay structure.
Railway PLB Ceiling Demand: ₹21,000
The memorandum also refers to demands made by the NC-JCM and Railway Federations for increasing the PLB ceiling. IRTSA has cited Ministry of Labour & Employment notifications dated 25 August 2026, and stated that the PLB ceiling should be increased from the existing ₹7,000 to ₹21,000.
Major Demands Made by IRTSA
1. Revision of PLB Ceiling for Pay Level-1
IRTSA has requested revision of the ceiling limit applicable to Pay Level-1 employees for the purpose of calculating Productivity Linked Bonus, arguing the existing ceiling should be updated in view of the present pay structure and DA rates.
2. Removal of PLB Ceiling for Pay Level-2 and Above
IRTSA has also demanded removal of the PLB ceiling for employees working in Pay Level-2 and above, proposing that PLB calculation should instead be linked with the Pay Level in which the employee is working — a significant change from the existing ceiling-based approach.
How Much PLB Could Railway Employees Receive Under the IRTSA Proposal?
| Basis Mentioned in Memorandum | Amount |
|---|---|
| Existing PLB | ₹17,951 |
| PLB corresponding to 55% DA for 2024-25 | ₹27,824 |
| PLB corresponding to 60% DA for 2025-26 | ₹28,722 |
| PLB based on proportional productivity increase | ₹27,564 |
| ₹18,000 basic pay for 78 days | ₹46,184 |
These figures represent calculations or demands cited by IRTSA and should not be interpreted as an approved increase in Railway PLB.
What Could Change for Railway Employees?
Existing system: ₹7,000 monthly emolument ceiling → PLB calculation → ₹17,951
Proposed approach: Revised ceiling for Level-1 + Pay Level-linked calculation for Level-2 and above → higher PLB based on updated pay structure.
However, any actual revision would require an appropriate decision by the competent authorities and issuance of the relevant Government/Railway Board orders.
- IRTSA submitted the memorandum on 8 September 2026
- Concerns PLB for non-gazetted Railway employees for 2025-26
- Existing PLB calculation ceiling cited: ₹7,000
- Existing PLB amount cited: ₹17,951, unchanged for about 11 years
- IRTSA calculates ₹28,722 PLB for 2025-26 based on 60% DA
- Productivity-based calculation cited: ₹27,564
- Demand to raise the ceiling to ₹21,000 also referenced
- Seeks revised ceiling for Pay Level-1 and removal of ceiling for Level-2 and above
- Proposes linking PLB calculation with the employee's Pay Level
Is ₹28,722 PLB approved for Railway employees? No. The ₹28,722 figure mentioned in the memorandum is IRTSA's calculation/demand based on the 60% DA figure cited in its representation. The document does not itself constitute a Government order sanctioning PLB of ₹28,722. Railway employees should wait for an official decision/order from the competent authority regarding PLB for FY 2025-26.
Conclusion
The IRTSA memorandum has brought renewed attention to the long-standing ₹7,000 PLB calculation ceiling for Railway employees. The association has argued that the ceiling fixed years ago does not adequately reflect the current 7th CPC pay structure, increased DA and changes in Railway productivity.
For 2025-26, IRTSA has calculated a PLB amount of ₹28,722 by taking the 60% DA figure cited in the memorandum into account. It has also sought a revised ceiling for Pay Level-1 and removal of the ceiling for Pay Level-2 and above, with PLB linked to the employee's Pay Level.
The final amount payable to Railway employees, however, will depend on the Government/Railway Board's decision and the applicable official order.
FAQs: Railway PLB 2025-26
What is the existing PLB ceiling for Railway employees?
The existing monthly emolument ceiling for PLB calculation is ₹7,000, fixed under a Railway Board order dated 15 September 2016.
What PLB amount has IRTSA calculated for 2025-26?
IRTSA has calculated a PLB of ₹28,722 for 2025-26 based on the 60% DA rate cited in its memorandum.
Is ₹28,722 an officially approved PLB amount?
No. It is a figure calculated and demanded by IRTSA in its memorandum, not an announced Government or Railway Board revision.
What ceiling increase has IRTSA demanded?
IRTSA has cited the demand to raise the PLB ceiling from ₹7,000 to ₹21,000, referencing Ministry of Labour & Employment notifications dated 25 August 2026.
What does IRTSA propose for Pay Level-2 and above?
IRTSA has demanded removal of the PLB ceiling for Pay Level-2 and above, proposing that PLB calculation be linked to the employee's Pay Level instead.
When was the IRTSA memorandum submitted?
The memorandum (IRTSA/Memo-33) is dated 8 September 2026 and was addressed to the Finance Minister and Railways Minister.
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