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Bonanza for govt staffers as Punjab cabinet okays over 2-fold salary hike
Sixth pay panel recommendations to be implemented with effect from January 1, 2016; disbursal to begin from July 1 this year; the minimum pay for state government employees will increase from ₹6,950 to ₹18,000 per month.
The Punjab government on Friday decided to implement a majority of the recommendations of its sixth pay commission with effect from January 1, 2016, a move that will benefit over five lakh serving and retired employees.
A decision in this regard was taken in cabinet meeting chaired by chief minister Capt Amarinder Singh. According to a government spokesperson, the minimum pay for state government employees will increase from ₹6,950 to ₹18,000 per month.
The arrears will be paid in two equal instalments in October 2021 and in January 2022. The disbursal of salaries and pensions under the new structure will begin from July 1.
Chaired by former IAS officer Jai Singh Gill, the commission was appointed by the previous state government on February 24, 2016. It submitted its report on April 30, 2021.
The state government’s decision has come months before Punjab goes to the assembly polls next year.
The implementation will entail 2.59 times increase in salaries and pensions over the previous pay commission recommendations, with an annual increment rate of 3%, resulting in pay scales of all existing employees continuing to be higher than in neighbouring Haryana.
The minimum pension will go up from ₹3,500 to ₹9,000 per month, and the minimum family pension would increase to ₹9,000 per month under the revised structure.
Divorcees or widows will be eligible for family pension.
The decision will put an additional burden of ₹8,637 crore on the exchequer with prospective additional net annual burden expected to be nearly ₹4,700 crore, the spokesperson added. The expected amount of arrears from January 1, 2016 to June 30, 2021 is nearly ₹13,800 crore.
The government has also accepted restoration of the commutation of pension to 40 % with effect from July 1, 2021.
Death-cum-retirement gratuity (DCRG) has been enhanced from ₹10 lakh to ₹20 lakh and the existing rates of ex-gratia have been doubled.
Both the DCRG and ex-gratia have been extended to employees covered under the New Pension Scheme.
House rent allowance and other benefits have been rationalised under the new structure. Special allowance to chowkidars and drivers has been doubled.
A higher education allowance, in the form of a lump sum incentive to all employees who attain higher educational qualification during the course of employment and in the field directly relevant to an employee’s job, is being introduced by the government.
New employees will, however, be paid as per the central government pay scales, which now apply to all new recruits.
