The modified PLR scheme will benefit over 20,000 employees of Major Ports and Dock Labour Boards from 2020-2026.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved modifications to the existing Productivity Linked Reward (PLR) Scheme for employees and workers of Major Ports and Dock Labour Boards. This revised scheme will be applicable from the financial year 2020-21 to 2025-26, impacting a total of 20,704 employees across the nation’s major ports. The modification aims to foster greater efficiency and productivity in India’s port sector while improving industrial relations and the working environment.
The modified PLR scheme will involve a financial outlay of approximately ₹200 crore over the five-year period. This scheme introduces significant changes in the way rewards are calculated, shifting the emphasis from an all-India performance-based approach to one that focuses more on port-specific performance. The revision increases the weightage for port-specific performance from the existing 50% to 55%, and by 2025–26, this will rise further to 60%. In contrast, the weightage for all-India port performance will gradually reduce to 40% from the earlier 50%.
The Ministry of Ports, Shipping, and Waterways has proposed these changes to incentivise individual ports to improve their operational performance, fostering a competitive environment. By linking rewards more closely to port-specific achievements, the government aims to drive efficiency and productivity while encouraging each port to adopt best practices tailored to their specific challenges and opportunities. The ultimate goal is to enhance overall port performance while encouraging healthy competition among India’s major ports.
The scheme also retains the wage ceiling for PLR calculation at ₹7,000 per month, ensuring that workers continue to benefit from a performance-linked bonus. The Productivity Linked Reward (PLR) is granted annually, based on agreements reached between the management and labour federations of major port authorities.
By refining the PLR scheme, the government expects to improve industrial relations within the port sector, promoting a more congenial working atmosphere. It is anticipated that the increased focus on individual port performance will lead to a noticeable improvement in productivity and operational efficiency across India’s key maritime hubs.
This move is part of the government’s broader effort to modernise the nation’s port infrastructure and improve service quality. It aligns with the Ministry of Ports, Shipping, and Waterways’ ongoing initiatives to enhance the competitiveness of Indian ports on a global scale, thus contributing to the country’s growing logistics and trade demands.
