Ahead of election year, Himachal CM announces new pay scales for government employees
New pay scales of government employees will put a ₹6,000 crore burden on the cash-strapped Himachal government
In a bid to appease employees ahead of the assembly elections next year, the Himachal government on Saturday announced new pay scales for employees of the state government with effect from January 1, 2016. The pay of January 2022 will be payable in February 2022 as per the revised pay scales. The government also reduced the period of contractual employees from three to two years.

Chief minister (CM) Jai Ram Thakur made the announcement while addressing a meeting of the Joint Coordination Committee (JCC) of the Himachal Pradesh non-gazetted employees federation, held after a gap of six years. Thakur said all pensioners and family pensioners will be given revised pension and other benefits from January 1, 2016.
The dearness allowance and dearness relief will be given on revised pay scales and revised pension/family pension. He said these new pay scales and revised pension will put an additional burden of ₹6,000 crore annually on the state exchequer.
The CM also announced the implementation of the new pension system (invalid pension and family pension ) from May 15, 2003 according to the office memorandum dated May 5, 2009 of the central government to the employees of the state government. He said this would put an additional burden of about ₹250 crore on the state exchequer.
He announced a reduction in the period for regularisation of contractual employees from three years to two years. He said that one year will also be reduced for regularisation/daily wages conversion in respect of daily wage employees, part-time workers, water guards and water carriers etc.
He announced the release of additional ₹10 crore for clearance of pending medical reimbursement bills.
The CM said a committee will be constituted for appointment on compassionate grounds under the chairmanship of the chief secretary. He said the government will also consider providing a tribal allowance to daily wage and contract employees serving in the tribal areas of the state.
Thakur said NPS employees will now have the freedom to choose any pension fund for investment for ensuring better returns. He said until now, these employees could invest only in those pension funds selected by the government.
The CM said that all NPS employees were being provided death-cum-retirement gratuity benefits and now, the government has decided to provide gratuity to NPS employees deprived of this benefit from May 15, 2003 to September 22, 2017.
Thakur said the employees hard work, dedication and commitment helped the state emerged as a role model for other states of the country. The CM said the state government was spending about 4% of its total budget on employees and pensioners, which will increase up to 50% after the implementation of the 6th pay commission.

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