The Union Cabinet, led by Prime Minister Narendra Modi, authorized on Thursday the payment of a 78-day productivity-linked bonus (PLB) of Rs 2,028.57 crore to 11,72,240 railway personnel. The funds will be distributed to several types of railway employees.

The payment of PLB serves as an incentive for railway personnel to strive toward improving the operation of the railways. "Every year, before the Durga Puja/Dussehra vacations, qualified railway personnel get paid PLB. This year, around 11.72 lakh non-gazetted Railway personnel would be awarded a PLB equivalent to 78 days' salary, according to a Cabinet communiqué.

The highest compensation per qualifying railway employee is Rs 17,951 for 78 days. In 2023-2024, Indian Railways loaded a record freight of 1,588 million tons and transported approximately 6.7 billion people.

The Cabinet also authorized a change to the existing Productivity Linked Reward (PLR) system for major ports and dock labor board employees/workers from 2020-21 to 2025-26. The updated program (effective from 2020-21 to 2025-26) will benefit about 20,704 employees of major port authorities and dock labor board personnel at a cost of around Rs 200 crore.

The PLR was computed based on the pay cap for the bonus computation, which is Rs 7,000 per month. According to the Cabinet, PLR will be paid annually by raising the port-specific performance weightage from 50% to 55%, and then to 60%.

The all-India port performance weightage would likewise decrease down to 40% during a period of 2025-26. According to the government, the PLR plan would promote improved industrial relations and a pleasant work environment in the port industry, as well as increase productivity.