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Punjab govt approves 2-fold salary hike for its employees: All you need to know
“The move will benefit over 540,000 serving and retired state government employees,” an official statement said, adding it was approved by the government despite the “precarious financial health” of Punjab.
The Congress-led government in Punjab on Friday decided to implement a majority of the recommendations of its sixth pay commission with effect from January 1, 2016, which will benefit more than 500,000 of its serving and retired employees. The decision was taken in a cabinet meeting chaired by chief minister Captain Amarinder Singh and it comes just before Punjab will hold elections next year.
“The move will benefit over 540,000 serving and retired state government employees,” an official statement said, adding it was approved by the government despite the “precarious financial health” of Punjab.
Here is what you need to know about the two-fold salary hike:
1. The minimum pay for all Punjab government employees will now increase from ₹6,950 to ₹18,000 per month. Hindustan Times reported on Friday the arrears will be paid in two equal instalments in October this year and in January 2022.
2. Disbursal of salaries and pensions under the new structure will begin from July 1 this year.
3. The implementation of the recommendations of the sixth pay commission will entail 2.59 times rise in salaries and pensions over the previous pay commission recommendations, with an annual increment of three per cent, resulting in pay scales of all existing employees continuing to be higher than that of Haryana, the official statement said.
4. The statement added the decision will put an additional burden of ₹8,637 crore on the exchequer with a prospective additional net annual burden expected to be nearly ₹4,700 crore.
5 The minimum pension will now increase from ₹3,500 to ₹9,000 per month and the minimum family pension will increase to ₹9,000 per month.
6. Divorcees and widows will be eligible for the family pension.
7. The Punjab government has also accepted the restoration of the commutation of pension to 40 per cent from July this year.
8. House rent allowance along with other benefits has been rationalised under the new structure. Special allowance to watchmen and drivers is being doubled.
9. The Punjab government is introducing a higher education allowance in the form of a lump-sum incentive to employees who obtain a higher education degree during their course of employment and in the field directly relevant to their job. But new employees will be paid in accordance with the Centre’s pay scales, which at present apply to all new recruits.
(With PTI inputs)
