Difference in staff salaries, ‘status’ becomes flashpoint in Chandigarh
On March 27, Union home minister Amit Shah announced that the service conditions of Chandigarh administration will be aligned with that of Central Civil Services.
Chandigarh: The ministry of home affairs’ decision to align the service conditions of all employees of the Union Territory of Chandigarh with the Central Civil Services has triggered the first major flashpoint between the ruling Aam Aadmi Party government in Punjab and the Bharatiya Janata Party-led Centre.

Also Read | Punjab House calls for Chandigarh’s transfer
What was the move?
On March 27, Union home minister Amit Shah announced that the service conditions of Chandigarh administration will be aligned with that of Central Civil Services and the retirement age of the Union Territory’s employees will increase from the existing 58 years to 60 years. Two days later, the Union Territory of Chandigarh Employees (Conditions of Service) Rules, 2022 was notified.
Why a controversy?
The decision triggered sharp criticism from the Shiromani Akali Dal (SAD), the Congress and the ruling Aam Aadmi Party (AAP), who termed it an attempt to “snatch” Chandigarh from Punjab. Bharatiya Janata Party (BJP) leaders, however, contended that change in service rules will not impact the status of Chandigarh vis-à-vis Punjab.
Also Read | Transfer of Chandigarh to Punjab: AAP government’s flashpoint with Centre
The change in rules also comes close on the heels of Punjab’s objections to the alleged “diminishment” of Punjab-cadre officers in the UT administration. Chandigarh is the joint capital of Punjab and Haryana, and 60% of employees are from Punjab and 40% are from Haryana, according to the Punjab reorganization act.
In February this year, Punjab took serious exception to the appointment of an AGMUT (Arunachal Pradesh-Goa-Mizoram and Union Territories)-cadre officer to the post of the CITCO (Chandigarh industrial and tourism and corporation) managing director, which it considers reserved for a Punjab-cadre officer. AGMUT cadre is usually reserved for Union territories.
What the shift means for Punjab and Chandigarh?
For Chandigarh, while earlier the 16,000-odd UT employees had service conditions similar to those in Punjab, now they have been brought on par with central employees.
Most UT employee unions, particularly teachers and nurses, have welcomed the move, that now they will get the higher pay scales but some from Punjab on deputation argued that in Punjab salaries will now be less and who will pay the difference. The shift in rules does not cover the around 20,000 outsourced and contractual employees.
In Punjab, the state government questioned the need for such a change when there was no demand from employees. THE government, an official said, WAS also wary of the fact that the added perks and extension in retirement age may create tensions between the employees in Punjab and Chandigarh. Another Punjab government official said the UT status to Chandigarh was a temporary arrangement and the move will complicate the transfer of UT to Punjab as its capital.
The Punjab assembly on Friday unanimously passed a resolution for the immediate transfer of Chandigarh to the state.
So, what changes?
Under the Union Territory of Chandigarh Employees (Conditions of Service) Rules, 2022, the retirement age of employees in the Union Territory will increase from 58 to 60 years; child care leave for women employees will increase from one to two years, school principals will get 30 earned leaves instead of eight and vice-principals post will be created in schools. The employees would also be provided a school education allowance of ₹2,250 per month (for up to two children), reimbursement of medical expenses on submission of bills, and a 25% increase in gratuity, among others. The age bracket for recruitment has also been changed from 18-37 years to 18-27 years.
Will pay scales be affected?
Pay scales will be upgraded after 10, 20 and 30 years of service, while new recruits on probation will get full pay. Earlier they used to get the salaries as fixed by the deputy commissioner (popularly called as DC rate, which is less).
What about deputations?
The change in service rules will not impact the deputations from other states. Officers and employees on deputation get benefits as per their parent cadre. There will be no change in the number of deputations either, a senior UT official said.
ABOUT THE AUTHORGurpreet Singh NibberGurpreet Singh Nibber is an Assistant Editor with the Punjab bureau. He covers politics, agriculture, power sector, environment, Sikh religious affairs and the Punjabi diaspora.

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